Because today’s financial markets are dynamic and fast-moving, the regulations affecting the markets and its participants must be reviewed over time and revised as necessary so that the regulations continue to fulfill the SEC’s mission. The SEC has long had formal and informal processes in place to review its existing rules, and a considerable portion of its rulemaking already involves changes to existing rules. Most recently, in March, the Commission began a retrospective review of offering and reporting requirements, and posted a regulatory review webpage seeking public input.
The Commission is seeking public comment on the process it should use to conduct retrospective reviews, such as how often rules should be reviewed, the factors that should be considered, and ways to improve public participation in the rulemaking process.
Public comments should be received by Oct. 6, 2011.
President Barack Obama issued an order on July 11 that recommended that independent regulatory agencies consider how they might best analyze rules that may be outmoded, ineffective or excessively burdensome, and modify, streamline or repeal them. The order also recommends analysis of regulations that might need to be strengthened or modernized, which may entail new rulemaking.
Broc Romanek has some additional insights and a humorous poll at The SEC’s Rethink of All Its Rules: The First Step.