Securities and Exchange Commissioner Daniel Gallagher recently defended the commission against critics during a speech given at a U.S. Chamber of Commerce event on SEC reform.
Gallagher told his audience that it deeply saddened him to “watch the torrent of criticism befall the agency over the last few years," ABA.com reports.
He addressed the calls for the SEC to increase money market fund reforms, which was not an area covered in last year’s Dodd-Frank Act.
“Any rulemaking in this space could be premature, and possible unnecessary,” Gallagher said, according to ABA.com. “I do not believe that it should be – nor can it be – the goal of the Commission to ensure that securities products are risk-free.”
Gallagher’s statements contradict the message sent by SEC Chairman Mary Schapiro last month in a speech when she told her audience of brokers that the commission is considering new capital buffers to better protect the money market funds, according to Reuters.com.
Gallagher acknowledged that Dodd-Frank gave the commission an opportunity to make changes. He said that the SEC should eventually begin focusing on a number of issues that were not addressed in the law’s language.
A majority of commissioners would need to approve any money market fund proposal in order for it to be put out for public comment, according to Reuters.com.