{"id":5281,"date":"2012-04-26T00:00:00","date_gmt":"2012-04-26T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2012\/04\/sec_to_make_sure_rule_writing"},"modified":"2022-04-22T11:06:20","modified_gmt":"2022-04-22T16:06:20","slug":"sec-to-make-sure-rule-writing","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/sec-to-make-sure-rule-writing\/","title":{"rendered":"SEC to Make Sure Rule Writing Process Incorporates Better Cost-Benefit Analysis"},"content":{"rendered":"<p>In the wake of criticism that the Securities and Exchange Commission has not done enough to assess its rules\u2019 economic impact, its Office of the General Counsel and Risk, Strategy, and Financial Innovation Division is providing staff with guidance that it needs to conduct a more thorough economic analysis during the entire rule writing process. One of the requirements is that there must be a cost-benefit evaluation when rules that are congressionally mandated or discretionary are involved. This guidance is now binding.<\/p>\n<p>However, SEC Chairman Mary Schapiro was quick to point out to the House Oversight Subcommittee on TARP and Financial Services that many of the rules that are written already follow this guidance. Now, staff will assess the cost-benefits of 28 rules that the Commission is proposing in the wake of the Dodd-Frank Wall Street Reform and Consumer Protection Act.<\/p>\n<p>The guidance comes following a report that was issued in January. In it, the Office of the Inspector General blamed the SEC for not conducting cost-benefit analysis when writing Dodd-Frank mandated rules. In addition to providing more comprehensive cost-benefit analysis, the SEC must also note the justification for the proposed rule, identify reasonable options to the rule, evaluate any economic repercussions, and find a baseline point for beginning the analysis. The SEC will be hiring more than three dozen economists to join its staff. If the Commission ends up being able to properly implement this guidance, then Congress may have to legislate.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/sec-to-make-sure-rule-writing\/\"  title=\"Continue Reading SEC to Make Sure Rule Writing Process Incorporates Better Cost-Benefit Analysis\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>In the wake of criticism that the Securities and Exchange Commission has not done enough to assess its rules\u2019 economic impact, its Office of the General Counsel and Risk, Strategy, and Financial Innovation Division is providing staff with guidance that it needs to conduct a more thorough economic analysis during the entire rule writing process. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3761,3963],"tags":[],"class_list":["post-5281","post","type-post","status-publish","format-standard","hentry","category-securities-and-exchange-commis","category-securities-law-and-regulations"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>SEC to Make Sure Rule Writing Process Incorporates Better Cost-Benefit Analysis &#8212; Investor Lawyers Blog &#8212; April 26, 2012<\/title>\n<meta name=\"description\" content=\"In the wake of criticism that the Securities and Exchange Commission has not done enough to assess its rules\u2019 economic impact, its Office of the General &#8212; April 26, 2012\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/sec-to-make-sure-rule-writing\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"SEC to Make Sure Rule Writing Process Incorporates Better Cost-Benefit Analysis &#8212; 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Investor Lawyers Blog &#8212; April 26, 2012","twitter_description":"In the wake of criticism that the Securities and Exchange Commission has not done enough to assess its rules\u2019 economic impact, its Office of the General &#8212; April 26, 2012","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/sec-to-make-sure-rule-writing\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/sec-to-make-sure-rule-writing\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"SEC to Make Sure Rule Writing Process Incorporates Better Cost-Benefit Analysis","datePublished":"2012-04-26T05:00:00+00:00","dateModified":"2022-04-22T16:06:20+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/sec-to-make-sure-rule-writing\/"},"wordCount":512,"articleSection":["Securities and Exchange Commission","Securities Law and Regulations"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/sec-to-make-sure-rule-writing\/","url":"https:\/\/www.investorlawyers.com\/blog\/sec-to-make-sure-rule-writing\/","name":"SEC to Make Sure Rule Writing Process Incorporates Better Cost-Benefit Analysis &#8212; 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