The Securities Industry and Financial Markets Association (SIFMA) today released a statement from Kenneth E. Bentsen, Jr., executive vice president, public policy and advocacy, in response to Senate Banking Committee Chairman Christopher Dodd’s proposed regulatory reform legislation:
“SIFMA shares Chairman Dodd’s goals of achieving regulatory clarity, improved transparency, and enhanced investor protection in our financial system. We believe investors, consumers and businesses that rely on well functioning capital markets must have trust and confidence in those markets so they are able to make informed decisions about their savings and investments. Any proposed legislation, including that of Senator Dodd’s, will have long-term economic ramifications and should establish a regulatory environment that will continue to promote capital formation, the opportunity to grow savings, and drive innovation and entrepreneurship to ensure long-term economic growth.
“We look forward to working with Chairman Dodd and the Senate Banking Committee to build a financial regulatory structure that restores trust and supports a vibrant economy.
“Specifically, we reiterate our support for the following:
- We strongly support the creation of a systemic risk regulator with authority and oversight over systemically important market participants, and the establishment of resolution authority to wind down such institutions to limit systemic risk and eliminate ‘too big to fail’;
- We support the creation of a new, federal fiduciary standard for broker-dealers and investment advisers when they provide personalized investment advice to their clients; and
- We support bringing greater regulatory transparency and oversight to derivatives markets and products, while ensuring derivatives continue to play their vital role in managing risk for financial institutions and countless corporate end users.“