Economics and Financial Regulation
6 Pages Posted: 10 Jul 2012
Date Written: July 9, 2012
Under a 2011 court decision known as Business Roundtable v. SEC, many Securities and Exchange Commission rules must pass a rigorous cost-benefit test to be in compliance with the new Dodd-Frank finance legislation. The SEC has recently released a memo outlining what is required to comply with the ruling. The memo will not overcome the inhibiting effects of 80 years of a different regulatory culture at the SEC, but it is a start. With congressional oversight, judicial review, and the good-faith sympathetic administration of these new rules by the SEC, a far more effective regulatory system may come about, perhaps even one with some real intellectual credibility.
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