FEDERALhearing transcript

Congressional Oversight Hearing: Financial Industry Regulatory Authority (FINRA)

Original title: OVERSIGHT OF THE FINANCIAL INDUSTRY REGULATORY AUTHORITY

January 1, 2015

financial regulation FINRA securities law fiduciary standard congressional oversight

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The Frame

What this does

The hearing examines whether FINRA is acting as a self-regulatory organization or an expanding federal-style regulator, which impacts how financial s are governed and how investment rules are applied to the public.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Financial broker-dealers

These entities are subject to the rules and enforcement actions established by FINRA.

Low- and middle-income investors

The committee is investigating how potential new fiduciary standards supported by FINRA might impact the investment services available to these individuals.

What changed

Last recorded activity January 1, 2015.

What's next

Next step not available in the current record.

Summary

The House Subcommittee on Capital Markets and Government Sponsored Enterprises held a hearing to review the operations and regulatory role of FINRA. The committee questioned FINRA's leadership regarding its expansion as a regulator and its support for new SEC s.

Key Facts

The hearing took place on May 1, 2015, in the Capitol Visitor Center.
The primary subject was the oversight of FINRA's role as a self-regulatory organization (SRO).
Chairman Garrett expressed concern that FINRA is functioning more like a 'quasi-government regulator' or 'deputy SEC' rather than an SRO.
The committee questioned FINRA's support for the SEC's proposed uniform fiduciary standard.
Chairman Garrett noted that SEC Chair Mary Jo White previously failed to provide data on the impact of the fiduciary standard on low- and middle-income investors.
The hearing requested that Richard G. Ketchum provide empirical data or studies supporting FINRA's position on the proposed securities law changes.

Why It Matters

Frequently Asked Questions

What is FINRA?

FINRA stands for the Financial Industry Regulatory Authority; it is a self-regulatory organization that oversees s in the United States.

Why was this hearing held?

The subcommittee held the hearing to conduct oversight of FINRA's regulatory activities and to question its support for new SEC s.

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift90% confidence

FINRA Regulatory Expansion

The committee explicitly challenged the perception of FINRA shifting from a self-regulatory organization to a quasi-government regulator.

Financial Industry Regulatory Authority Subcommittee on Capital Markets and Government Sponsored Enterprises

Connected Entities

personMary Jo White“Chair of the SEC.”Map →

personRichard G. Ketchum“Chairman and CEO of FINRA, witness at the hearing.”Map →

organizationFinancial Industry Regulatory Authority“The self-regulatory organization under oversight review.”Map →

organizationSubcommittee on Capital Markets and Government Sponsored Enterprises“The congressional body conducting the hearing.”Map →

personScott Garrett“Chairman of the Subcommittee on Capital Markets and Government Sponsored Enterpr”Map →

Sources

Open source document

www.govinfo.gov

Analysis Score

0–100

Significance65
How much this matters to a regular citizen
Controversy50
Intensity of disagreement among stakeholders
Entertainment15
Compellingness for a non-policy-wonk reader
Buzz10
Current news / social attention level

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