Concerned that the Securities and Exchange Commission is in danger of losing its traditional independence, Commissioner Daniel Gallagher is blaming the Dodd-Frank Act and creation of the Financial Stability Oversight Council for the threat.
During a speech last week at the Practising Law Institute’s annual “The SEC Speaks” conference, Gallagher began by offering a historical note. It was originally intended that the Federal Trade Commission would administer the Securities Exchange Act of 1934. Congress ultimately, however, decided that an independent, bipartisan agency with a high level of technical expertise in securities matters was warranted and the SEC was created. Its core attribute of autonomy, however, is now threatened by a “constant stream of external influences.”
