Stay up-to-date with the latest developments in securities law through access to both news and all statutes and regulations. Find relevant corporate filings through a searchable EDGAR database. And...
Feb. 9 — The Securities and Exchange Commission's budget would increase to $1.78 billion for fiscal year 2017 under the White House's Feb. 9 budget request, in a step toward the administration's stated goal of doubling the agency's funding by 2021.
The biggest slice of the increase would fund the agency's examination program, which agency officials and Democratic lawmakers have said is understaffed and unable to examine as many investment advisers as it should.
The SEC only is able to examine approximately 10 percent of investment advisers annually. By comparison, between the SEC and Financial Industry Regulatory Authority, roughly half of all registered broker-dealers are examined annually.
Congressional Republicans balked at the increase, as many have for previous White House requests to boost SEC funding.
“Throughout his time in office, all we have gotten from President Obama are irrelevant budgets full of more spending fueled by higher taxes—all seemingly written to appease the Bernie Sanders-Elizabeth Warren-Hillary Clinton liberal wing of the Democrat party,” House Financial Services Committee Chairman Jeb Hensarling (R-Texas) said in a news release.
Despite the opposition, the SEC has still seen increases in its budget in recent years. The agency was funded at $1.5 billion in 2015 and $1.6 billion in 2016.
The White House's goal is to ramp the agency's budget up to $3 billion by 2021, long after President Obama will have left office.
“Grossly underfunding [the SEC] has allowed some on Wall Street to return to their high-risk pre-crash ways of doing business, endangering our financial stability and undermining the mission of financial reform,” Dennis Kelleher, president of nonprofit Better Markets, said in a news release.
If the funding level is enacted as requested, the SEC said it plans to hire approximately 250 new full-time staff, about half of which would be for exams.
Even if enacted, however, the SEC estimates it would only be able to examine 12 percent of all investment advisers annually.
The SEC is considering shifting approximately 100 examiners to the investment adviser and investment company realm, separately from the potential new hires, but no agency estimates are available regarding how much that would increase industry coverage.
The SEC said it would also use additional funding to bolster its data analytics, cybersecurity and surveillance capabilities.
The agency is also working on a redesign of EDGAR, its Electronic Data Gathering, Analysis and Retrieval system.
To contact the reporter on this story: Rob Tricchinelli in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Phyllis Diamond at email@example.com
For SEC analysis of the budget request, visit https://www.sec.gov/about/reports/secfy17congbudgjust.pdf
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 firstname.lastname@example.org.
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 email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)