A major player in the financial services industry is urging regulators to spend more time studying the effects of proposed regulations before they are imposed.
The Securities Industry and Financial Markets Association has asked for a “comprehensive cost-benefit analysis” of new rules stemming from the Dodd-Frank Act, according to ThomsonReuters.com.
"It's critical to understand the impact of Dodd-Frank and the numerous other initiatives already undertaken to make our financial system safer by reducing risk," Securities Industry and Financial Markets Association Chief Executive Tim Ryan said, according to ThomsonReuters.com.
The Securities and Exchange Commission is supposed to conduct thorough analyses of the economic costs of its rulemaking. Recent lawsuits, however, have been brought and won against the commission for not effectively studying the economic impact of its rules.
The standards for determining costs may become more strict if new legislation that was introduced in June passes, according to ThomsonReuters.com. The bill would set new criteria for the agency’s cost-benefit analyses and potentially pave the way for more legal challenges to rules.
Critics are accusing Ryan and others in the financial services industry of pushing for changes to the SEC’s review process, saying that their intentions are only to slow its efforts or squash proposed rules.
"They're not asking for more cost-benefit analysis,” Lynn Turner, a former SEC chief accountant, said, according to ThomsonReuters.com. “They're just asking that the rules not be done."