February 1 2016


Herb Perone

Statement of IAA President & CEO Karen Barr on SEC Initiative to Increase Investment Adviser Examination Staff

Washington, DC (February 1, 2016) -- Following is the statement of Karen Barr, President & CEO of the Investment Adviser Association (IAA), on the SEC’s initiative to increase the size of its investment adviser examination staff through reassignment of current broker-dealer examiners and new hires:

“The Investment Adviser Association (IAA) applauds the SEC for its decision to increase the number of examiners dedicated to inspecting investment advisers. We understand the Office of Compliance Inspections and Examinations (OCIE) plans to add 100 new examiners to its investment adviser examination staff, including by shifting examiners from its broker-dealer examination staff. The additional 100 investment adviser examiners, along with 70 new examiners added in 2015, would represent an impressive 35 percent increase in its adviser examination staff, to about 630 examiners. This reallocation of examination resources is consistent with the evolving registrant population, given that the number of SEC-registered investment advisers has been growing while the number of broker-dealers has been diminishing.

“The IAA has long advocated for a significant increase in the number of adviser examiners, both through reallocation of existing staff and the hiring of new examiners. Allocating substantial resources to the adviser examination staff is good, sound public policy that contributes substantially to the SEC’s mission of ensuring investor protection and market integrity and will meaningfully augment SEC examination of the advisory profession.

“The IAA strongly supports this initiative and other measures – including increased Congressional funding – to ensure that the SEC has the resources it needs to fulfill its crucial mission.”

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About Investment Adviser Association

The Investment Adviser Association (IAA) is the leading trade association representing the interests of SEC-registered investment adviser firms. The IAA’s more than 550 member firms collectively manage assets in excess of $16 trillion for a wide variety of institutional and individual investors. In addition to serving as the voice of the advisory profession on Capitol Hill and before the SEC, DOL, CFTC and other U.S. and international regulators, the IAA provides extensive compliance and educational services to its membership. For more information, visit www.investmentadviser.org or follow us on LinkedIn and Twitter.

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