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Congress Puts Finra Under Microscope

September 6, 2017

A House of Representatives panel will hold a hearing on the oversight and operations of Finra this week, ThinkAdvisor writes.

On Thursday the Capital Markets, Securities and Investment Subcommittee will consider Finra’s existing regulatory agenda, its self-regulatory organization structure and its oversight by and relationship with the SEC, according to the publication. Additionally, the panel will examine Finra’s recent “360” initiative launched in March, according to the Committee on Financial Servicesmemorandum. That initiative was launched by Finra to evaluate its own effectiveness in relation to its structure and operations, use of data and technology and tools to measure its programs’ success.

In broader strokes the panel will also look at self-regulation in U.S. capital markets overall in relation to Finra, ThinkAdvisor writes. Robert Cook, Finra’s president and CEO appointed last year, will be the sole witness at the hearing, according to the memorandum.

The same day the Financial Institutions and Consumer Credit Subcommittee will consider six bills, including the Systemic Risk Designation Improvement Act of 2017, ThinkAdvisor writes. That bill would amend the Dodd-Frank Act’s designation of systemically risky institutions, according to the publication. Meanwhile, the Senate Banking Committee is scheduled to mark up a bill adjusting the definition of “independent member” of the Financial Stability Oversight Committee, ThinkAdvisor writes.

By Alex Padalka
  • To read the ThinkAdvisor article cited in this story, click here.