The Securities Exchange Commission (SEC) is paying much greater attention to economic cost-benefit analysis in its rule making activities. Private concerns wishing to alter the SEC’s rulemaking should consider using economic analysis and rationale in their comments to a greater extent than previously.
What the Republicans could not accomplish legislatively when Dodd-Frank was first being considered is now being partly accomplished through the regulatory rule-making process. Two government reports advocate that economic cost-benefit analysis be more explicitly and extensively considered when implementing Dodd-Frank.
These reports came from the Government Accountability Office (GAO), entitled “Dodd-Frank Act Regulations Implementation Could Benefit from Additional Analyses and Coordination” and the SEC Office of Inspector General, entitled “Follow-Up Review of Cost-Benefit Analyses in Selected SEC Dodd-Frank Act Rulemakings”. We provide quotes from these reports, and responses from the SEC Chairperson in this article.
Businesses should welcome the opportunity to become more involved in this process.