Funding must be increased for the Securities and Exchange
Commission in order to implement critical consumer protections and
boost investor confidence, according to the Financial Planning
The FPC, which represents 75,000 financial professionals
throughout the U.S., sent a letter to majority and minority leaders
in both the House and the Senate, urging them to increase the SEC's
budget. The coalition noted that doing so would not place
additional burdens on taxpayers, as the SEC is funded entirely
through fees assessed on those whom it regulates.
The FPC argued that in the wake of the recent financial collapse
and the Madoff scandal, it is more important than ever to regulate
the markets and restore investor confidence. Not increasing the
agency's budget, or decreasing it, would seriously hinder its
ability to regulate the market and prevent further episodes of
fraud and abuse, the FPC wrote.
"Level or reduced appropriations would jeopardize the agency's
ability to adequately police the securities markets and leave
investors vulnerable to unscrupulous individuals engaged in
financial scams and fraud," the letter stated.
The FPC concluded with a plea to provide the SEC with the tools
it needs to protect the most vulnerable of investors-the nation's
The FPC is a collaboration of financial services professional
organizations, including the Certified Financial Planner Board of
Standards, the Financial Planning Association and the National
Association of Personal Financial Advisors.
Financial Advisor magazine reaches 90,000 financial planners and
investment advisors through its print publication and its
. It also publishes
, for advisors interested in socially responsible investing, and
, for advisors targeting the ultra high-net-worth market.