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Statement of Administration Policy: H.R. 1062 - SEC Regulatory Accountability Act

May 15, 2013


STATEMENT OF ADMINISTRATION POLICY

(House Rules)

(Rep. Garrett, R-NJ, and 23 cosponsors)

The Securities and Exchange Commission (SEC) plays a critical role in protecting Americans' investments for retirement, higher education, and other personal savings while ensuring strong, efficient, safe financial activity that contributes to the Nation's economic health and job creation. While the Administration is firmly committed to smart and effective regulations that advance statutory goals in the most cost-effective and efficient manner, the Administration opposes passage of H.R. 1062. 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. H.R. 1062 would direct the SEC to conduct time- and resource-intensive assessments after it adopts or amends major regulations before the impacts of the regulations may have occurred or be known. The bill would add analytical requirements that could result in unnecessary delays in the rulemaking process, thereby undermining the ability of the SEC to effectively execute its statutory mandates.

The Administration is committed to a regulatory system that is informed by science, cost-justified, and consistent with economic growth. Through efforts including Executive Order 13579, "Regulation and Independent Regulatory Agencies," the Administration is taking important steps to encourage independent agencies to follow cost-saving and burden-reducing principles in their reviews of new regulations, and to examine their existing rules to identify those that should be modified, streamlined, or repealed.

Barack Obama, Statement of Administration Policy: H.R. 1062 - SEC Regulatory Accountability Act Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/303896