SEC Commissioner Uyeda Criticizes SEC Regulatory Agenda
SEC Commissioner Mark T. Uyeda warned that rapid change to securities regulations can have wide-spread consequences and that the benefits of globalizing capital markets can only be achieved through "responsible regulation." He said that sweeping regulatory changes on capital markets have significant impacts both from a domestic and global standpoint; he supported instead regulations that are "tailor made" to address specific problems.
In remarks before the a Symposium on Building the Financial System of the 21st Century, Mr. Uyeda expressed the following broad concerns:
- Securities Markets and Banking Sector. While "highly complementary" to one another, Mr. Uyeda explained the "very different purposes" of securities regulation from bank regulation. He said that securities markets offer liquidity and price discovery while allowing market participants to raise capital and allocate risk. The purpose of bank regulation, he said, was to ensure safety and soundness of depository institutions and payment systems. He cautioned that attempts to "prudentially regulate" securities markets undermine the market purpose.
- SEC Regulatory Agenda. Mr. Uyeda asserted that the SEC’s current regulatory agenda lacks a "coherent vision." He argued that "change for change’s sake rarely leads to good outcomes." and decried the lack of time to review and "meaningfully comment" on recent SEC proposals and the pace and volume of the rulemaking agenda.
- Robust Global Markets. Mr. Uyeda warned against rapid change to regulations that impact cross border access, and supported allowing U.S. investors direct access to foreign markets so long as the securities regulatory regime in a foreign jurisdiction provides comparable protections.