Friday, November 25, 2016

President Trump to Gut the SEC?

New administration, new priorities. Given Mr. Trump's desire to cut the federal budget, in part by cutting regulations, it is not a surprise that cutting enforcement of those regulations would be part of his plan.

On analysis by the New York Times notes that the new attorney general could be Rudolph W. Giuliani. Like most, he is going to want to put new priorities in place, and with the promised spending cuts to improve infrastructure, the SEC can expect a reduced enforcement budget. The SEC has reported annual increases in the number of enforcement filings.

However, there may be a change in the SEC's authority in administrative hearings outside of federal court. The Dodd-Frank Act gave the agency the authority to obtain penalties against any defendant in these proceedings, which gave the SEC the ability to use its questionably consititutional private proceedings against non-registered individuals. This abuse has been the subject of much controversy, and is undoubtedly a target of those who wish to trim Dodd-Frank, its related expenses, and abuses.

How Trump’s Presidency Will Change the Justice Dept. and S.E.C. - The New York Times:




Post a Comment