House Financial Services Committee Chairman Spencer Bachus (R-Ala.) has announced that he is drafting legislation to restructure the Securities and Exchange Commission.
“The SEC is structurally flawed and suffers from operational inefficiencies and organizational incoherence,” Bachus said, AdvisorOne.com reports.
The title of the bill will be the SEC Modernization Act. It is designed to make the agency more efficient, consolidate offices, enhance technology use and tighten ethical safeguards to prevent conflict of interests. The bill includes reform recommendations made by the SEC’s inspector general, the Government Accountability Office and the Boston Consulting Group.
Bachus said the main problem is the structure of the SEC, adding that “over the years Congress has only increased its dysfunctional structure through fragmentary and piecemeal amendments rather than the comprehensive reform that is needed,” AdvisorOne.com reports.
Bachus opposes providing additional funds to the SEC and said that the agency’s budget nearly tripled from where it was a decade ago.
When Congress returns from its August recess, the full House Financial Services will hold a hearing regarding the SEC called “Fixing the Watchdog,” AdvisorOne.com reports.
The SEC has recently been slammed with new responsibilities, including drafting hundreds of new rules required by last year’s financial overhaul legislation. In addition, a federal court recently ordered the agency to do even more analysis of the costs and benefits of new regulations.\