Securities Law Daily provides daily coverage of developments in the regulation of federal, state, and international securities and futures trading, with objective coverage of the...
May 24 — House lawmakers May 24 proposed cutting the Securities and Exchange Commission's budget to $1.555 billion in fiscal 2017, a $50 million decrease from the $1.605 billion now funding the agency.
The White House had asked for $1.78 billion for the SEC in 2017, with an eye toward doubling the agency's funding by 2021 (27 SLD, 2/10/16).
“Cutting the SEC’s budget and the fund it uses for technology modernization would seriously harm our ability to monitor the markets and protect investors against fraudsters,” an SEC representative told Bloomberg BNA in an e-mail. “This funding is critical to further enhance our capabilities and to continue our robust enforcement, examinations and market oversight programs.”
The SEC had hoped to use a funding increase to bolster its examinations of registered investment advisers. The agency has begun shifting resources away from its broker-dealer exams to focus on IAs (48 SLD, 3/11/16).
The bill would let Congress “tightly hold the reins on the over-spending and overreach within federal bureaucracies,” Rep. Hal Rogers (R-Ky.) said in a news release. Rogers is chairman of the House Appropriations Committee, which released the bill. The committee will hold a May 25 hearing on the measure.
The SEC's funding is part of the financial services appropriations bill unveiled May 24. The bill would also prevent the agency from studying, developing or adopting a political spending disclosure rule, a broader prohibition than enacted for 2016.
The previous measure said the agency can't “finalize, issue, or implement” such a rule, but the new bill adds “study, develop, propose” to the prohibition. Senate Democrats have called for the agency to prepare the rule even though it can't formally adopt it (169 SLD, 9/1/15).
The 2017 bill would also create an Office of the Advocate for Small Business Capital Formation and a Small Business Capital Formation Advisory Committee at the agency. A bill to create both has already passed the House (21 SLD, 2/2/16).
Systemic risk regulators on the Financial Stability Oversight Council would also face additional hurdles to designating large nonbank financial institutions as “systemically important,” under the bill.
The measure would also overhaul how big banks could enter bankruptcy.
To contact the reporter on this story: Rob Tricchinelli in Washington at email@example.com
To contact the editor responsible for this story: Phyllis Diamond at firstname.lastname@example.org
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)