July 27, 1994
TO: BOARD OF GOVERNORS NO. 65-94
FEDERAL LEGISLATION COMMITTEE NO. 15-94
FEDERAL LEGISLATION MEMBERS NO. 12-94
RE: INSTITUTE PUSHES SEC SELF-FUNDING IN SENATE
__________________________________________________________
In a July 22 letter to the Senate Banking Committee, the
Institute urged Senators to support legislation which would
establish a self-funding mechanism for the Securities and Exchange
Commission (SEC).
This legislation is expected to be introduced shortly by
Committee Chairman Donald W. Riegle Jr. (D-MI). The bill
represents an approach crafted by the SEC and the Administration
which would allow SEC self-funding but which does not run afoul of
Senate procedural rules -- a problem which has prevented earlier
action on the issue. Essentially, this bill would phase in a self-
funding concept over ten years, and would tie SEC funding levels
directly to market activity. At present, the SEC operates as a
profit center for the federal government, and the securities
industry pays far more in fees each year than is allocated to it
for regulatory oversight. The remainder goes to general revenue
funds at Treasury to pay for other government programs.
The House of Representatives has already passed SEC self-
funding legislation. H.R. 2239, introduced by Energy and Commerce
Committee Chairman John Dingell (D-MI), passed the House floor on
July 20, 1993, by voice vote.
A copy of the Institute's letter to the Senate Banking
Committee is attached. We will keep you informed of further
developments. If you wish additional information, please call the
Legislative Affairs Department at 202/326-5890.
The memo can be found in FUNDS, the Institute's Fund User
Network and Delivery System, under Legislative Affairs; Washington
Update.
Julie Domenick
Senior Vice President
Legislative Affairs
Attachments