According to an article in Investment News, a website has been launched, www.shareowners.org, in order to allow the average investor can voice opposition to the proposed budgets cuts of the Securities and Exchange Commission and the Commodity Futures Trading Commission. “Visitors to the portal will be able to send messages to their senators and congressional representatives.” A bill being pushed by Republicans in the House, if passed, would “reduce current SEC funding by $25 million for the rest for the rest of the year and chop $189 million out of President Barack Obama’s fiscal year 2011 request for the agency.” They are also trying to slow down the implementation of the Dodd-Frank Act, which passed last summer.
Republican senators said in a statement that they “are concerned that regulators are not allowing adequate time for meaningful public comment on their proposed rules.” They are asserting that they are taking this action because they are responding to the voters who gave the majority of the House last fall. However, others see ulterior motives in the Republicans actions. Barbara Roper, director of investor protection at the Consumer Federation of America, believes that “cuts of the magnitude that the GOP is proposing are meant to cripple the agencies and thereby derail Wall Street reform.”
Ms. Roper and her organization has joined www.shareowners.org “to sponsor the website conduit for investor communication with Capital Hill.” The “lack of resources at the SEC and CFTC endangers their ability to protect investors and monitor financial markets,” according to Tracy Stewart, executive director of Shareowners.org.
The SEC delivered a report to Congress on instituting regulation that would “impose a universal fiduciary duty on anyone providing personalized retail investment advice.” However the rule could be delayed because of SEC funding problems and even if they do proceed, “it may no be able to enforce the law due to lack of staff.” According to the article, the current SEC budget does not cost taxpayers any money because it is funded by the fees charged to regulated entities. The additional funding is seen as essential to properly institute tighter regulations on Wall Street.
Page Perry has over 125 years collective experience representing institutional and individual investors in securities-related litigation and arbitration all over the country. While past results are not indicative of future success, Page Perry’s attorneys have recovered over $1,000,000 for clients on more than 40 occasions.