U.S. Representative Ed Royce (R-Calif.) questioned witnesses on the need for more accountability at the Securities Exchange Commission (SEC) and the lack of competition in proxy advising during a Capital Markets and Government Sponsored Enterprises Subcommittee hearing entitled “Legislative Proposals to Enhance Capital Formation, Transparency, and Regulatory Accountability.”
“I had a question for Mr. Quaadman. You note in your written testimony that rule-writing entities such as the PCAOB and Municipal Securities Rulemaking Board are subject to the same requirements and enhancements contained in the SEC Regulatory Accountability Act. Could you please explain why that is beneficial? Also, should the SEC require FASB conduct similar cost-benefit analysis when setting accounting and reporting standards?” asked Rep. Royce.
“We propose for any subordinate organization of the SEC, if they are involved in rule writing that has a force of regulation, there should be a cost-benefit analysis. That would include FASB. I believe FINRA has committed to do that. The PCAOB, as an example, their standards have to go through the SEC rulemaking process before they go final, so you should have a cost-benefit analysis there. As one example through the PCAOB, because they could not get standards done over the last several years …read more
Source:: U.S. Rep. Ed Royce