SEC Back on Track Thanks to Chairman Jay Clayton and His Colleagues
‘In short, the new rule seems to be a case study in regulation done right: A careful, prudent step that will actually protect the American people… Just yet another way we are literally turning the page on the Obama Administration’s failed policies and taking a smarter, better direction for the good of the country with outstanding nominees and sound decision-making.’
WASHINGTON, D.C. – U.S. Senate Majority Leader Mitch McConnell (R-KY) delivered the following remarks on the Senate floor regarding the rollback of a harmful Obama-era regulation by the Securities and Exchange Commission’s (SEC):
“Examples continue to pour in about the big difference that the well-qualified individuals the Senate has been confirming are making in government service. Last autumn, the Senate got the Securities and Exchange Commission up and running at full steam when we confirmed its fifth member. And just last week, we saw the Commission take a major step forward thanks to those commissioners and to the leadership of Jay Clayton, its chairman.
“In the area of investor protections, as with many other subjects, the legacy of the Obama Administration was messy and ineffective. President Obama’s Department of Labor decided to unilaterally go even farther than Dodd-Frank in regulating the advisers and broker-dealers who sell to investors. The regulation they put in place was a confusing, garbled attempt at imposing a single, one-size-fits-all standard on all kinds of business where it was not necessarily the best approach. It was wrong on the merits and, even apart from that, it was implemented in a half-baked and ineffective way.
“Now Chairman Clayton and his colleagues are getting things back on track. The SEC has carefully crafted a tailored new rule to make sure that brokers really act in the best interests of their clients. There are new standards for disclosing conflicts of interest, new standards for transparency in fees, and new prohibitions against shady sales tactics.
“In short, the new rule seems to be a case study in regulation done right: A careful, prudent step that will actually protect the American people. This won’t necessarily make front-page news across the nation. Just yet another way we are literally turning the page on the Obama Administration’s failed policies and taking a smarter, better direction for the good of the country with outstanding nominees and sound decision-making.”
Related Issues: Regulations