Gensler Testifies at House Appropriations Hearing on SEC FY2023 Budget

SEC Chair Gary Gensler testified during a House Appropriations Committee subcommittee hearing as part of the FY2023 congressional appropriations process. While Gensler’s comments focused on the need for an increased budget at the SEC, he also answered questions regarding the length of comment periods for rule proposals and ESG related issues. In his written testimony, Gensler stated the SEC is seeking a budget increase of 8% from FY2022 due to changes in financial technology, increasingly complex filings, and additional responsibilities including the implementation of legislation like the Holding Foreign Companies Accountable Act of 2020. Gensler added that the SEC’s “personnel level must continue to grow commensurate with the expansion and complexity in the capital markets around the globe.” Gensler’s written testimony also highlighted industry reporting increases including an increase of 12% for registered entities, a 40% increase in private funds managed by registered investment advisers, and a 20% increase in the amount of data the SEC processes. He also noted that the SEC’s request of $370 million for IT needs is modest when compared to the $1 billion average JPMorgan spends on technology each month.