The Financial Services Institute sent a letter Thursday to the leadership of the House of Representatives urging the House to pass H.R. 1062, which the House Financial Services Committee approved on May 7; the bill is scheduled to be considered by the full House on Friday morning.
Introduced by Rep. Scott Garrett, R-N.J., in March, the bill would direct the SEC, in the FSI letter’s words, to “implement practical and necessary changes by codifying the cost-benefit analysis requirements of Executive Order No. 13563 and applying its directives to the SEC.”
President Barack Obama issued that order on Jan. 18, 2011. Among other directives, it ordered that the U.S. regulatory system “must take into account benefits and costs, both quantitative and qualitative,” and that each agency of the government should “propose or adopt a regulation only upon a reasoned determination that its benefits justify its costs.”
In a May 7 statement, Rep. Garrett (right) said H.R. 1062 would “require the SEC to ensure that the benefits of any rulemaking outweigh the costs and that both new and existing regulations are accessible, consistent, written in plain language and easy to understand. I regularly hear from constituents, especially job creators, about how Washington red tape needs to be cut.”
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The White House Office of Management and Budget (OMB) in a statement Wednesday expressed administration opposition to the bill. “By adding burdensome and disruptive new procedures, H.R. 1062 would impede the ability of the SEC to protect investors, maintain orderly and efficient markets, and facilitate capital formation.
“The administration believes in the value of cost-benefit analysis. However, H.R. 1062 would add onerous procedures that would threaten the implementation of key reforms related to financial stability and investor protection.”