On January 19th, the SEC released its Study on Enhancing Investment Adviser Examinations, as required by the Dodd-Frank Act. The study finds that the SEC likely will not have sufficient capacity in the near or long term to conduct effective examinations of registered investment advisers with adequate frequency. To address that lack of capacity, the study recommends that the SEC be allowed to impose user fees on SEC-registered investment advisers to fund their examinations by Office of Compliance Inspections and Examinations; that one or more SROs be authorized to examine, subject to SEC oversight, all SEC-registered investment advisers; or that the Financial Industry Regulatory Authority ("FINRA") by authorized to examine dual registrants for compliance with the Advisers Act. Commissioner Elisse B. Walter issued a statement emphasizing the serious and systemic problems caused by unfunded Congressional mandates. Walter Statement. See also Bloomberg. On January 21st, Reuters reported that at least one investment advisory industry group says that members prefer the imposition of user fees over being inspected by FINRA. Preferences.