Appropriations Panel Keeps SEC, CFTC Budgets Level

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...

By Rob Tricchinelli

June 16 — The Senate Appropriations Committee approved a spending bill that would keep the SEC's funding flat at $1.605 billion for fiscal year 2017, a week after a House committee voted to trim the agency's budget by $50 million.

The Senate's financial services spending package, approved unanimously June 16, would restrict the Securities and Exchange Commission from proposing or adopting a political spending disclosure rule.

Sen. Chris Coons (D-Del.) tried to amend the bill during the markup by adding $176 million to the agency's budget to match a White House request, but the effort was rejected.

The bill would fund the Commodity Futures Trading Commission at $250 million for 2017, also flat from 2016. The House version is at the same level.

Riders

The prohibition on the political disclosure rule continues identical language from 2016. The House's version of the bill would broaden the ban to prevent the SEC from preparing or studying the rule.

The Senate version doesn't contain many other riders from the House's version, however, such as limiting the Financial Stability Oversight Council's powers or creating more small business advocacy at the SEC.

Buried deep in the Senate bill is also a very specific, narrow prohibition on the agency from adopting a rule related to sending paper copies of mutual fund disclosures to shareholders. The SEC proposed rules to update its mutual fund disclosures in May 2015.

To contact the reporter on this story: Rob Tricchinelli in Washington at rtricchinelli@bna.com

To contact the editor responsible for this story: Yin Wilczek at ywilczek@bna.com