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SEC and CFTC Budgets Increased for FY2011

The Obama administration is calling for an 11% to 13% increase in funding for the SEC and a potentially 55% increase for the CFTC for fiscal 2011.  Much of the increased funding for the CFTC, and a smaller portion of the SEC increase, however, is contingent on Congressional authorization of legislation expanding the jurisdiction and authority of the CFTC and SEC over derivatives.  SEC Chairman, Mary L. Schapiro, stated that the SEC plans to use its increased budget to enhance enforcement activities:

If enacted, the President's request will do a great deal to help us keep pace with the continuing growth of the markets and provide necessary resources to support important regulatory initiatives in 2011.


The SEC's 2011 Budget Justification document supports the funding increase for the SEC with statistics about the loss of skilled workforce at the Commission (about 1% per year since 2005), the increase in registrants the Commission oversees ("more than 35,000 registrants, including over 10,000 public companies, 7,800 mutual funds, about 11,500 investment advisers, 5,400 broker-dealers, 600 transfer agents, 12 securities exchanges, 10 nationally recognized statistical rating organizations (NRSROs), and self-regulatory organizations (SROs) such as the Financial Industry Regulatory Authority, Municipal Securities Rulemaking Board, and Public Company Accounting Oversight Board").

The Budget Justification also notes that the increase in the SEC's budget would be more than offset by the "increased SEC collections of fees on securities transactions and registrations."