Two U.S. House lawmakers unveiled legislation Wednesday to let the Securities and Exchange Commission outsource oversight of investment advisers to a private body, a move aimed at stepping up scrutiny of the industry. The bipartisan measure, introduced by House Financial Services Committee Chairman Spencer Bachus (R., Ala.) and Rep. Carolyn McCarthy, would set the stage for merging adviser oversight into the Financial Industry Regulatory Authority, Wall Street’s self-policing body. Finra isn’t explicitly mentioned in the bill, but many in the industry believe it is the only organization poised to take on oversight of the more than 12,000 investment advisers currently registered with the SEC should the regulator give up the role. Finra hasn’t been shy about wanting the job. Read Wall Street Journal Update here.
