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consumers and financial regulation February 2, 2009

Posted by Bradley in : Uncategorized , trackback

In a speech the other day, Luis Aguilar of the SEC argued for greater representation of consumers’ interests in the rule-making process (which is one of my preoccupations):

A complementary proposal is the formation of a federal advisory committee to make recommendations for improving retail investor participation in Commission business and for improving the usefulness to retail investors of Commission rules. As we seek to improve our regulatory process and adopt better rules, I think it is important to provide retail investors with an active voice in our policymaking, since much of what we do often affects retail investors who do not routinely have contact with members of the Commission or its staff, too often do not submit comment letters, may not be well-versed in the securities or administrative laws, and may not effectively be represented by industry groups. Establishing a federal advisory committee under the Federal Advisory Committee Act (or FACA) consisting mostly of retail investors to provide advice and guidance on our rules and on our ways of interacting with these investors could be very useful. I believe direct retail investor input would be helpful toward restoring the confidence of retail investors in the SEC — they can again know that we work for them and are their advocate. Such a committee also could play a key role in our efforts to address issues of importance to retail investors and provide a useful forum for their views to be more effectively incorporated into the Commission’s work.


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