Requiring Regulatory Accountability at the SECPosted by on May 13, 2013
As an independent agency, the Securities and Exchange Commission (SEC) is not currently subject to President Obama’s Executive Order No. 13563. The order directs non-independent executive branch agencies to perform a cost-benefit analysis on proposed regulations, tailor those regulations to impose the least burden on society, and retrospectively analyze old rules to identify those ripe for repeal.
Last year, the U.S. Court of Appeals for the DC Circuit unanimously concluded that in promulgating a rule related to corporate board elections, the SEC “inconsistently and opportunistically framed the costs and benefits of the rule; failed to adequately quantify the certain costs or to explain why those costs could not be quantified; neglected to support its predictive judgments; contradicted itself; and failed to respond to substantial problems raised by commenters.”
H.R. 1062 would essentially codify President Obama’s E.O. No. 13563 with regard to the SEC. It would require the SEC to: