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Cmte Financial Services (R)
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Subcommittee To Conduct Oversight of SEC’s Rulemaking And Priorities

Washington, Apr 24 -

The Capital Markets and Government Sponsored Enterprises Subcommittee will review the Securities and Exchange Commission’s (SEC) activities, initiatives and Fiscal Year 2013 budget request during an oversight hearing this Wednesday.

SEC Chairman Mary Schapiro will be the only witness at the hearing, where she will likely be questioned about pending rules mandated by the Dodd-Frank Act; the SEC’s plans to implement the JOBS Act; the Commission’s oversight of investment advisers; and plans to propose new rules regarding money market funds.

Earlier this month, Financial Services Committee Chairman Spencer Bachus and Vice Chairman Jeb Hensarling wrote Schapiro raising concerns about the SEC’s plans for further money market fund reform, and Bachus is introducing legislation to improve the oversight of retail investment advisers.

The Financial Services Committee’s efforts to promote small business capital formation – which culminated in Congress’s approval of the JOBS Act – are also expected to be discussed during the hearing.

“The bipartisan JOBS Act provides the necessary framework to make it easier for startup companies and small businesses to access capital and create badly needed jobs.  As our economy continues to struggle with millions out of work, nothing is more urgent.  I am therefore hopeful that Chairman Schapiro will make timely implementation of the JOBS Act one of the SEC’s highest priorities,” said Chairman Bachus.

The JOBS (Jumpstart Our Business Startups) Act is comprised of six provisions that originated in the Financial Services Committee and relaxes some of the more onerous SEC registration requirements on small companies.

“As the SEC continues with the implementation of Dodd-Frank, it’s important for members of the subcommittee to engage in rigorous oversight to remain on top of the rule making process and to ensure it is carried out in a responsible manner.  I will be particularly interested to speak with Chairman Schapiro on the importance of conducting a thorough cost-benefit analysis of each rule to ensure the SEC does not unnecessarily impede economic growth,” said Subcommittee Chairman Scott Garrett.  “With our economy on the ropes, we shouldn’t be making things harder on ourselves by pursuing overzealous regulation that will dry up capital and stifle job creation.”

Subcommittee Chairman Garrett is the sponsor of H.R. 2308, the SEC Regulatory Accountability Act, which requires the SEC to conduct cost-benefit analysis of new rules.  The Financial Services Committee approved the bill on Feb. 16.

The Subcommittee hearing will take place on Wednesday, April 25 at 10 a.m. in room 2128 Rayburn.