For Immediate Release
December 16, 2022
Contact:
Arthur Bryant 202-225-1621
Washington, D.C. – Congresswoman Ann Wagner (R-MO), Vice Ranking Member of the House Financial Services Committee, introduced the SEC Regulatory Accountability Act, legislation to protect retail investors from arbitrary and unnecessary SEC rulemakings. This bill would statutorily require the SEC to identify the problem a proposed regulation is seeking to address and conduct a cost-benefit analysis of the rulemaking.
“Retail investors deserve consistency and transparency. The SEC Regulatory Accountability Act will help those saving for retirement, a down payment on a house, or for their children’s future by making sure the SEC doesn’t arbitrarily implement unnecessary and complex rules. It is vital the SEC only issues regulations that are absolutely necessary, to avoid burdening everyday investors, and this legislation will ensure all regulations are justified with compelling evidence and relevant, up-to-date analysis.”
Background on the SEC Regulatory Accountability Act:
Before issuing a regulation:
The bill establishes that the SEC, before issuing a regulation, must:
- Identify the nature and source of the problem that the proposed regulation is designed to address in order to assess whether any new regulation is warranted;
- Ensure that the proposed regulation is within the Commission’s jurisdiction and that the Commission has the experience and expertise to regulate the subject matter covered by the new regulation;
- Identify the market participants who will be impacted by the new regulation;
- Utilize the SEC Chief Economist to assess the costs and benefits of the intended regulation and adopt it only upon a reasoned determination that its benefits justify the costs;
- Identify and assess available alternatives that were considered; and
- Ensure regulation is accessible, consistent, in plain language, and easy to understand
While issuing a regulation:
The bill also establishes that when issuing a rule, the SEC must consider the impact of the regulation on:
- Investor choice;
- Market liquidity;
- Small businesses;
- Competition in the marketplace;
- Investor access; and
- United States’ economic competitiveness
Post-implementation regulatory review
Additionally, the SEC must:
- Issue for notice and comment a proposal to amend or rescind the regulation, or publish a notice that no action will be taken on the regulation
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Arthur Bryant
Communications Director
Congresswoman Ann Wagner (MO-2)
2350 Rayburn House Office Building
Washington, D.C. 20515