Some of the nation’s top financial leaders and lawyers say reforming the Securities and Exchange Commission’s regulatory process would indeed help the U.S. capital markets stay competitive.
Speaking at an American Enterprise Institute (AEI) event in Washington April 20, which addressed whether excessive regulation and litigation is eroding U.S. financial competitiveness, Robert Glauber, former chairman and CEO of NASD, who’s now a visiting professor at Harvard Law School, said the SEC should revamp its regulatory process in four ways.
Also a member of the Committee on Capital Markets Regulation, Glauber’s suggestions were included in a report issued by the Committee last November, which concluded there was strong evidence that financial transactions were migrating away from the U.S. due to excessive regulation and litigation.
First, Glauber said, the SEC needs to adopt formal cost-benefit analyses of its proposed rules and regulations. The SEC is currently exempt from establishing a cost-benefit analysis, he said, but the securities regulator could choose to do so voluntarily by either recruiting more economists to its staff or by outsourcing the analysis to a third party.