Oversight of the U.S. Securities and Exchange Commission: Wall Street’s Cop Is... (EventID=114113)

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On Tuesday, October 5, 2021, at 12:00 p.m. (ET) full Committee Chairwoman Waters and Ranking Member McHenry will host a virtual hearing entitled, “Oversight of the U.S. Securities and Exchange Commission: Wall Street’s Cop Is Finally Back on the Beat."

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Witnesses for this one-panel hearing will be:

• The Honorable Gary Gensler, Chair, Securities and Exchange Commission


The SEC’s Authorities and Functions

During the peak of the Great Depression, Congress passed the Securities Act of 1933 and the Securities Exchange Act of 1934, which created the Securities Exchange Commission (SEC). The SEC’s stated mission is to: (1) protect investors; (2) maintain fair, orderly, and efficient markets; and (3) facilitate capital formation. The SEC fulfills its mission through rulemaking, supervision, and enforcement. The SEC oversees more than 28,000 market entities, including investment advisers, investment companies, broker-dealers, national securities exchanges, credit rating agencies, clearing agencies, the Financial Industry Regulatory Authority (FINRA), the Public Company Accounting Oversight Board (PCAOB), the Municipal Securities Rulemaking Board (MSRB), and the Financial Accounting Standards Board (FASB).

The SEC oversees more than $100 trillion in securitiestrading annually, and intakes the disclosures of around 7,400 reporting companies, including more than 4,000 exchange-listed public companies. The SEC has an annual budget of around $2 billion that supports approximately 4,500 employees across its headquarters and 11 regional offices. The agency’s largest program divisions are Enforcement, Examinations, Corporation Finance, Trading and Markets, Investment Management, and Economic and Risk Analysis. Smaller program offices include the Investor Education and Advocacy, Investor Advocate, Credit Ratings, the Chief Accountant, and the Office of Minority and Women Inclusion (OMWI), among others.

Budget Request for FY 2023

According to the SEC’s FY 2023 budget request, the number of SEC staff decreased by about 4% since FY 2016 when the SEC had 4,650 staff. For FY 2023, the SEC is requesting $2.169 billion in support of 5,268 positions and 4,913 full-time equivalents. The SEC’s funding is deficit-neutral as appropriated funds are fully offset by transaction fees. The SEC’s budget request states that it is requesting an 8.8% increase in the agency’s funding as compared to FY 2022 in order to address key priority areas. The budget...

Hearing page: https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=408475