SEC Will Not Be Able To Implement Dodd-Frank Fully If Sequestration Hits And Budgets Are Not Increased

Thursday, February 14, 2013 07:56
edit
SEC Will Not Be Able To Implement Dodd-Frank Fully If Sequestration Hits And Budgets Are Not Increased

Tags: deficit | sec | staff

SEC chair Elisse Walter says the commission cannot implement fully the reforms dictated by the Dodd-Frank Act unless Congress grants a budget increase.
 
The SEC as well as other financial regulatory bodies' budget requests have failed over the last several years despite a significant expansion in their responsibilities.

This Website Is For Financial Professionals Only


 
Republican lawmakers have largely stymied expanding the budgets in an effort to prevent increased regulation of the financial markets.
 
The sequestration currently scheduled to go into effect on March 1 will cut resources even more.
 
The Commodities Futures Trading Commission (CFTC) budget will be cut by $17 million and the Consumer Financial Protection Bureau’s will be cut by $34 million.
 
The budgets of both the SEC and the CFTC are appropriated by Congress although the SEC’s deficit is offset by industry transaction fees.
 
Other entities whose budgets are due to be chopped include the Public Company Accounting Oversight Board and the Securities Investor Protection Corp (SIPC).
 
The small budget increase for the SEC requested by the Obama administration at the beginning of the year would help the commission to hire 676 new staff members to carry out exams and investigate wrongdoing.
 
The agencies are not disclosing how they will manage if their budget requests are denied and sequestion occurs on schedule.

Comments (0)

Write comment

You must be logged in to post a comment. Please register if you do not have an account yet.

busy