II 

112TH CONGRESS 

2D SESSION S. 2373 

To improve the consideration by the Securities and Exchange Commission 

of the costs and benefits of its regulations and orders. 

IN THE SENATE OF THE UNITED STATES 

APRIL 26, 2012 

Mr. VITTER introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To improve the consideration by the Securities and Exchange 

Commission of the costs and benefits of its regulations 

and orders. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘SEC Regulatory Ac5 countability Act’’. 


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1 SEC. 2. CONSIDERATION BY THE SECURITIES AND EX2 CHANGE COMMISSION OF THE COSTS AND 

3 BENEFITS OF ITS REGULATIONS AND OR4 DERS. 

5 Section 23 of the Securities Exchange Act of 1934 

6 (15 U.S.C. 78w) is amended by adding at the end the fol7 lowing: 

8 ‘‘(e) CONSIDERATION OF COSTS AND BENEFITS.— 

9 ‘‘(1) IN GENERAL.—Before promulgating a reg10 ulation under the securities laws, or issuing any 

11 order pursuant to such laws, the Commission shall— 

12 ‘‘(A) clearly identify the nature of the 

13 problem that the proposed regulation is de14 signed to address, as well as assess the signifi15 cance of that problem, to enable assessment of 

16 whether any new regulation is warranted; 

17 ‘‘(B) utilize the Office of the Chief Econo18 mist to assess the costs and benefits, both qual19 itative and quantitative, of the intended regula20 tion or order and propose or adopt a regulation 

21 or order only on a reasoned determination that 

22 the benefits of the intended regulation or order 

23 justify the costs of the intended regulation or 

24 order; 


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1 ‘‘(C) ensure that any regulation or order is 

2 accessible, consistent, written in plain language, 

3 and easy to understand; and 

4 ‘‘(D) measure and seek to improve the ac5 tual results of regulatory requirements. 

6 ‘‘(2) CONSIDERATIONS.—In deciding whether 

7 and how to regulate, the Commission shall assess 

8 the costs and benefits of available regulatory alter9 natives, including the alternative of not regulating. 

10 In addition, the Commission may, in making a rea11 soned determination of the costs and benefits of a 

12 potential regulation— 

13 ‘‘(A) assess the best ways of protecting 

14 market participants and the public; 

15 ‘‘(B) take into consideration investor 

16 choice; 

17 ‘‘(C) consider the impact on capital forma18 tion; 

19 ‘‘(D) evaluate the effect on the efficiency, 

20 competitiveness, and financial integrity of secu21 rities markets; 

22 ‘‘(E) consider the impact on market liquid23 ity in the securities markets; 

24 ‘‘(F) take into consideration price dis25 covery; 


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1 ‘‘(G) evaluate sound risk management 

2 practices; 

3 ‘‘(H) evaluate the degree and nature of the 

4 risks posed by various activities within the 

5 scope of its jurisdiction; 

6 ‘‘(I) determine whether, consistent with ob7 taining regulatory objectives, the regulation is 

8 tailored to impose the least burden on society, 

9 including market participants, individuals, busi10 nesses of differing sizes, and other entities (in11 cluding State and local governmental entities), 

12 taking into account, to the extent practicable, 

13 the cumulative costs of regulations; 

14 ‘‘(J) determine whether the regulation is 

15 inconsistent, incompatible, or duplicative of 

16 other Federal regulations; and 

17 ‘‘(K) determine whether, in choosing 

18 among alternative regulatory approaches, those 

19 approaches maximize net benefits. 

20 ‘‘(3) REVIEW OF EXISTING REGULATIONS.— 

21 The Commission shall periodically review its regula22 tions and orders in effect before the date of enact23 ment of this subsection to determine whether any 

24 such regulations or orders are outmoded, ineffective, 

25 insufficient, or excessively burdensome, and shall 


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1 modify, streamline, expand, or repeal them in ac2 cordance with such review.’’. 

Æ 


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