In total, the Dodd-Frank Act contains approximately 400 specific mandates to be implemented by agency rulemaking, with approximately a hundred applying directly to the SEC. The SEC has adopted final rules implementing nearly a third of those statutory mandates and continues to devote tremendous amounts of resources to drafting additional proposals, completing required studies, and implementing the new rules.Read Gallagher’s full remarks.
[However,] the Commission is handling ten times its normal rulemaking volume.
As a result, the SEC, like other regulators, is now dealing with the problem of rushed, inadequate rule proposals that were pushed out in a bid to meet arbitrary congressional deadlines.
This increased pace raises two sets of concerns. The first stems from the difference between getting rules done and getting them done right.
The second set of concerns centers around the concept of opportunity cost and the misallocation of limited resources.
Thursday, January 17, 2013
SEC Gallagher: Misallocation of Resources, Opportunity Costs due to DFA
SEC Commissioner Daniel Gallagher spoke before the U.S. Chamber Center for Capital Markets Competitiveness on the “misallocation of resources and opportunity costs that have arisen from the many false assumptions underlying the [Dodd-Frank] Act.”