Frank wants the SEC to retain oversight for investment advisors, rather than turn regulation over to an SRO.
“I’m skeptical of giving government power to organizations that are not government organizations,” he said.
The fact that the SEC did not make a recommendation between SEC oversight, an SRO or charging user fees to fund more advisor exams, did not provide the “clarity that people expect,” Dodd said.
Frank reiterated his opposition to the idea of making large asset managers subject to greater regulation. The Financial Stability Oversight Council, the uber regulatory committee created by Dodd-Frank, is reportedly studying whether large asset managers should be deemed “systemically significant” under the law.
“No one ever suggested you were a systemic risk,” Frank told the assembled advisors. “I don’t think Fidelity or Blackrock will be next” to fail.