more-arw search

Will New SEC Rules Make It Less Effective?

Mary Schapiro, head of the SEC, recently testified before Congress.

Proposed legislation that would change how the Securities and Exchange Commission drafts and sets its rules could end up negatively affecting the agency's ability to instigate change, CFO reports.

Among other provisions, the bill would force the SEC to spend more time calculating the impact, according to the magazine. That issue is particularly relevant to companies who had to comply with Sarbanes-Oxley, as many had to pay millions of dollars for auditors instead of the initial SEC estimate of $91,000 per company, CFO says.

"My fear about this legislation is that it layers so much analysis on top of what we already do that we’re set up to fail," Schapiro said during testimony delivered at a House Financial Services Committee hearing in September, as quoted by the news source. "There is no way this agency or any other agency could do all of these things, some of which conflict."

During her testimony, Schapiro also outlined some of the steps the SEC had taken to act on recommendations from an assessment conducted by the Boston Consulting Group. She said the agency was working to add new capabilities to its staff, as well as working to improve the employees it already has.