One of the most contentious issues during the financial services reform debate was whether investment advisers should be regulated by a “self-regulatory” organization. The financial services industry is divided between those who support an investment adviser SRO and want it to be the existing SRO for broker-dealers, FINRA, and those who oppose the creation of an SRO and, if there is to be adviser SRO, FINRA serving in that role. The SEC is expected to release a report recommending that Congress authorize the creation of an SRO, which will trigger an intense debate on this issue.

Fawn Johnson, Brokers and Investment Advisers Face Off Ahead of SEC Report, National Journal (1/13/11) (at 2011 WLNR 794471 for Westlaw subscribers)