Planning groups are at odds over a bill, H.R. 1062, that passed the House on Friday requiring the Securities and Exchange Commission to conduct more rigourous cost-benefit analyses prior to any rulemaking.
The bill—the SEC Regulatory Accountability Act, which was written by Rep. Scott Garret, R-N.J., and codifies the cost-benefit analysis requirements of the president’s Executive Order No. 13563—passed the House by a 235-161 vote.
The bill’s chances of passing in the Senate, however, are slim.
In order to implement the bill, the SEC’s operating costs would spike by $23 million over five years, according to the Congressional Budget Office.
However, Dale Brown, president and CEO of the Financial Services Institute, says that the bill has “the potential to save Main Street investors and financial services providers significantly more,” as “unclear and inefficient regulations drive up compliance costs and increase litigation expenses for those serving the financial and securities industry, and this in turn raises the cost of investment and retirement planning for investors.”