Schapiro: Shift in oversight damages consumer financial product regulation

Securities and Exchange Commission Chairman Mary Schapiro is arguing against a proposal from the Obama administration, which is reportedly considering the creation of a consolidated commission to oversee consumer financial products.

According to the Washington Post, Schapiro insists the creation of such a commission would damage investment protection grounded by the SEC’s long established experience on regulating mutual funds.

“Schapiro’s remarks are likely to presage an intense debate over the future of financial regulation,” write Washington Post staff writers Zachary A. Goldfarb and Binyamin Appelbaum. “A major business lobby yesterday expressed skepticism about adding a layer of regulation. Meanwhile, prominent consumer groups, which have long argued that regulatory agencies have not adequately protected consumers from risky mortgages and tricky credit cards, welcomed the idea of a new commission.”

The Post reports groups, including the Mutual Fund Directors Forum and the U.S. Chamber of Commerce are “wary” of removing the SEC’s authority over mutual funds.