After reviewing the SEC Inspector General’s Madoff report containing what he considered to be the SEC’s “monumental incompetence,” Sen. Charles Schumer (NY) said today that he will soon introduce legislation that would allow the SEC to fund itself. Sen. Schumer said that he will introduce the legislation when Congress returns next week. Being self-funded, which SEC Chairman Mary Schapiro and Commissioner Luis Aguilar have been suggesting lately, would mean the SEC would no longer be part of the budget and appropriations process, but would use the transaction fees paid by registrants.
Schumer believes that self-funding would increase the SEC’s funding substantially. For a comprehensive discussion including my take on the self-funding issue, look for my upcoming column that will be published in the September 9 Compliance Week newsletter and here at ComplianceWeek.com.
