Committee Submits Comment Letter to the SEC on Best Interest Proposal

On July 16, 2018, the Committee submitted a comment letter to the Securities and Exchange Commission (“SEC”) in response to the SEC’s request for comment on its Regulation Best Interest and Form CRS Relationship Summary proposals. These proposals are intended to enhance the standard of conduct for broker-dealers when making securities transaction or investment strategy […]

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Committee Submits Comment Letter to the Fed on Capital Proposal

On June 25, 2018, the Committee submitted a comment letter to the Federal Reserve (the “Fed”) in response to the Fed’s proposals on amendments to the Regulatory Capital, Capital Plan, and Stress Test Rules (“Proposed Amendments”). The letter commended the Fed for its efforts to relax the capital distribution and balance sheet assumptions in the […]

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Committee Staff Releases Report on the U.S. Public Enforcement System

Today the Staff of the Committee on Capital Markets Regulation is releasing a report on the structure, operation, and transparency of the U.S. public enforcement system as it pertains to the financial system. The report explains how the enforcement system is organized, presents data on enforcement activity over a 17-year period, and offers 19 recommendations […]

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The Financial Times Op-ed: Is it time to roll back US bank regulation?

By HAL S. SCOTT Originally published by the Financial Times on March 1, 2018 Ten years after the start of the financial crisis, US policymakers are finally starting to deal with the stiff regulatory reaction that it spawned. The US Senate will soon take up the first bipartisan effort to rein in the impact of […]

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Committee Submits Comment Letter to the Federal Reserve on Proposals to Increase Stress Test Transparency

On January 19, 2018, the Committee submitted a comment letter to the Federal Reserve (the “Fed”) in response to the Fed’s proposals requesting public input on its proposed efforts to increase the transparency surrounding the scenarios and models used in the Fed’s annual supervisory stress tests of certain large financial institutions.   The letter commended the […]

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Committee Releases Statement on the Economic Growth, Regulatory Relief and Consumer Protection Act

The Committee has released a statement urging the Senate to consider the Economic Growth, Regulatory Relief and Consumer Protection Act (the “Bill”). The Bill provides regulatory relief for smaller financial institutions by, among other things, simplifying capital requirements, creating an exemptive safe harbor from the Volcker Rule, and raising the threshold for enhanced prudential standards. The […]

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Common Ownership and Antitrust Concerns

The Committee on Capital Markets Regulation seeks to clarify the state of the current debate on common ownership of equities by institutional owners and the potential anti-competitive behavior associated with such ownership. Given that the potential responses to the alleged antitrust concerns could prove quite harmful to savers and retail investors, it is important to […]

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Committee Updates Summary Statistics for U.S. Equity Markets

The Committee has updated the empirical portion of its seminal 2016 report on U.S. equity market structure. The updated data shows that there have been no major changes to U.S. equity market structure in the last year. The updated analysis can be accessed here.

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Wall Street Journal Op-ed: The SEC Plans to Collect Too Much Information

By HAL S. SCOTT and JOHN GULLIVER Originally published by the Wall Street Journal on October 2, 2017. Is your personal information safe from the Securities and Exchange Commission? The SEC has mandated that U.S. stock exchanges and the Financial Industry Regulatory Authority establish a database by November 2018 that will store the names, birth […]

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Committee Submits Comment Letter to Federal Reserve on Proposed Guidance on Supervisory Expectations for Boards of Directors

The Committee submitted a letter to the Federal Reserve (“Fed”) commending the Fed for seeking to clarify supervisory expectations for boards of directors, refocus expectations on boards’ core functions, and distinguish expectations for boards from those of management. The letter noted the Committee’s concern, however, that the Fed’s guidance could be construed as imposing rigid […]

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