The U.S. Chamber of Commerce and the Investment Company Institute (ICI) filed a lawsuit yesterday in federal court suing the CFTC. The lawsuit seeks to overturn a rule requiring mutual funds with commodities investments to register with the CFTC.
The lawsuit argues the CFTC didn’t properly assess the costs and benefits when it imposed the regulation in February. The U.S. Chamber of Commerce and the ICI argue the measure is unnecessary because mutual funds are already overseen by the SEC.
The rule, “if allowed to stand, will impose enormous costs and burdens,” ICI President Paul Schott Stevens said in a call with reporters. “Ultimately those costs will come out of shareholders’ pockets.”
This has added to the ongoing criticism of regulators hurried approach to rulemaking. Yesterday, the House Committee on Oversight and Government Reform held a hearing regarding the SEC’s cost-benefit analysis, following a SEC rule overturned for inadequate cost-benefit analysis in July.
Read the court filling.
See the SEC hearing materials and view an archived video.