The U.S. Chamber of Commerce recently published a report analyzing the progress of U.S. financial regulation a year after adoption of the sweeping Dodd-Frank legislation. The report's premise is that:
"The goal should never be less or more regulation, it should be better regulation. Our common goal must continue to be getting regulation right."
The paper highlights five areas where the Chamber believes significant improvements can be made:
Rationalizing the US Regulatory Structure: The report criticizes the financial services regulatory structure as being a "patchwork of regulatory agencies that have been cobbled together over time." The report urges the Dodd-Frank created Financial Services Oversight Council to "fundamentally reorganize and simplify the regulatory structure."
Fundamentally Reforming Regulatory Agencies: The report notes that current regulatory agencies, such as the SEC, were established to oversee and regulate markets very different from those in place today, yet the agencies have remained relatively static in structure and operations.
Making Nongovernmental Policy Makers Accountable: The report notes that the Financial Industry Regulatory Authority (FINRA) and ISS have tremendous influence over the capital markets, yet are not subject to the checks and balances that govern governmental agencies. The report suggests additional due process and transparency requirements for such entities.
Restoring Integrity to Litigation and Enforcement Practices: The report advocates further strengthening of regulators' capacity to detect and deter fraud, but finds fault with what it sees as too much use of enforcement efforts as an alternative to rulemaking.
U.S. Competitiveness and Engagement: The report stresses the need for U.S. policy makers to coordinate effectively with their counterparts as the markets increasingly have become more global in nature.
The full report is here: https://www.uschamber.com/sites/default/files/reports/1107_UnfinishedAgenda_WEB.pdf