Under the Bank Holding Company Act, the Federal Reserve has robust statutory authority to impose and enforce supervisory requirements on those entities.
Thus, there is not currently a regulatory gap in this area. Under the Memorandum of Understanding between the SEC and the Federal Reserve that was executed in July of this year, we will continue to work closely with the Fed, but focused even more clearly on our statutory obligation to regulate the broker-dealer subsidiaries of the banking conglomerates. The information from the bank holding company level that the SEC will continue to receive under the MOU will strengthen our ability to protect the customers of the broker-dealers and the integrity of the broker-dealer firms.
As we learned from the CSE experience, it is critical that Congress ensure there are no similar major gaps in our regulatory framework. Neither the SEC nor any regulator has authority even to require minimum disclosure. I urge Congress to take swift action to address this. Their dedication and commitment in behalf of investors and the American people are unequaled.
Please contact us if you have any questions or would like to start a hedge fund. Other related hedge fund law articles include:.
You must be logged in to post a comment. This site uses Akismet to reduce spam. Learn how your comment data is processed. Chairman Cox made the following statement: The last six months have made it abundantly clear that voluntary regulation does not work. The fact that investment bank holding companies could withdraw from this voluntary supervision at their discretion diminished the perceived mandate of the CSE program, and weakened its effectiveness.
The report's major findings are ultimately derivative of the lack of specific legal authority for the SEC or any other agency to act as the regulator of these large investment bank holding companies.
With each of the major investment banks that had been part of the CSE program being reconstituted within a bank holding company, they will all be subject to statutory supervision by the Federal Reserve. Under the Bank Holding Company Act, the Federal Reserve has robust statutory authority to impose and enforce supervisory requirements on those entities. Thus, there is not currently a regulatory gap in this area. Under the Memorandum of Understanding between the SEC and the Federal Reserve that was executed in July of this year, we will continue to work closely with the Fed, but focused even more clearly on our statutory obligation to regulate the broker-dealer subsidiaries of the banking conglomerates.
The information from the bank holding company level that the SEC will continue to receive under the MOU will strengthen our ability to protect the customers of the broker-dealers and the integrity of the broker-dealer firms. The Inspector General's office also made 26 specific recommendations to improve the CSE program, which are comprehensive and worthy of support.
Although the CSE program is ending, we will look closely at the applicability of those recommendations to other areas of the Commission's work and move to aggressively implement them.
As we learned from the CSE experience, it is critical that Congress ensure there are no similar major gaps in our regulatory framework.
0コメント