U.S. Rep. Ann Wagner (R-MO) recently introduced legislation that seeks to protect retail investors from arbitrary and unnecessary Securities and Exchange Commission (SEC) rulemaking.
Wagner recently detailed the SEC Regulatory Accountability Act (H.R. 9603), indicating the legislation 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,” said Wagner, vice ranking member of the House Financial Services Committee. “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.”
Before the SEC issues a regulation, the bill directs the agency to identify the nature and source of the problem the proposed regulation is designed to address to assess whether any new regulation is warranted; identify the market participants impacted by the new regulation; identify and assess available alternatives considered; and ensure the regulation is accessible, consistent and easy to understand.