The Committee on Capital Markets Regulation is an independent and nonpartisan501(c)(3) research organization financed by contributions from individuals, foundations, and corporations.
Thirty-six leaders from the financial sector, including banks, broker-dealers, asset managers, private funds, insurance companies, and academia comprise the committee's membership. The committee co-chairs are Glenn Hubbard, dean of Columbia Business School, and John L. Thornton, chairman of the Brookings Institution. The committee's director is Professor Hal S. Scott, Emeritus Nomura Professor and director of the Program on International Financial Systems at Harvard Law School. The committee's research regarding the regulation of U.S. capital markets provides policymakers with a nonpartisan, empirical foundation for public policy.[1]
The global Financial Crisis: A Plan for Regulatory Reform
In 2009, the Committee determined four critical objectives based upon a year of observation and research into the financial crisis that are further broken down into 57 specific recommendations.[3] These four objectives are:
Reduced systemic risk through more sensible and effective regulation.
Increased disclosure to protect investors and stabilize the market.
A unified regulatory system where lines of accountability are clear and transparency in improved.
International regulatory harmonization and cooperation.
Federal regulators must have the ability to use tax dollars (and recoup them later) to pay for the orderly resolution of failing institutions in cases where they judge the alternative would be national and/or international financial catastrophe.
No banks or non-banks should be labeled “systemically important.”
Clarity about jurisdiction over the clearing and settlement of derivatives is crucial to reducing systemic risk, as is increasing these activities.
The proposed independent and transparently funded Consumer Financial Protection Bureau (CFPB) should be free of overriding authority except that of the Financial Stability Oversight Council (as provided in the Dodd Bill) and the Treasury Secretary (only when he or she is acting on matters of the “safety and soundness” of the financial system, as in matters of systemic risk).
A Balanced Approach to Cost-Benefit Analysis Reform
Released in October 2013, the committee's position paper set forth a balanced approach to strengthening cost-benefit analysis requirements applicable to the independent agencies tasked with implementing regulatory reform in the U.S. financial system. The Committee outlined an approach it believed would maximize the economic efficiency of the U.S. regulatory system, minimize procedural burdens on regulators, and help insulate new rulemakings from judicial challenge.[5]
The U.S. Equity Markets: A Plan for Regulatory Reform
In July 2016, the committee's “The U.S. Equity Markets: A Plan for Regulatory Reform” sought to inform the public and policymakers about the U.S. equity market structure and evaluate its performance for U.S. investors and public companies.[6] The report set forth 24 recommendations that fell into three categories:
Increasing the transparency of U.S. equity markets
Strengthening the resilience of U.S. equity markets
Reducing transaction costs by enhancing competition
Recent proposals
Roadmap for Regulatory Reform
In May 2017, the committee's “Roadmap for Regulatory Reform” set forth priority regulatory actions for the Trump administration that would promote U.S. economic growth and enhance the stability of the U.S. financial system. The Roadmap consisted of eleven recommendation areas:[7]
Conducting a cumulative assessment of regulatory impact
Enhancing the U.S. approach to international regulatory frameworks
Rationalizing Enforcement in the U.S. Financial System
In June 2018, the staff of the Committee developed a comprehensive overview of the structure, operation, and transparency of the U.S. public enforcement system as it pertains to the financial system.[8] The staff set forth recommendations in four major areas:
Improving coordination and cooperation between enforcement authorities
Rationalizing the setting of sanctions in enforcement actions
Ensuring the appropriate use of monetary sanctions
Promoting individual accountability
Expanding Opportunities for Investors and Retirees: Private Equity
In October 2018, the Committee found that private equity funds have a well-established performance history that justifies expanding access to them.[9] It recommends three ways to do so:
Legislative reforms to expand access to direct investments in private equity funds
SEC reforms to expand access to public closed-end funds that invest in private equity funds
Department of Labor reforms to facilitate the ability of 401(k) plans to offer investment options that provide exposure to private equity funds.
Committee members
Gregory Babyak, global head of regulatory and policy group, Bloomberg
Wei Jiang, Arthur F. Burns Professor of Free and Competitive Enterprise & vice dean for curriculum and instruction dean's office, Columbia Business School
↑ "Members". Archived from the original on 2018-02-25. Retrieved 2018-11-08.
This page is based on this Wikipedia article Text is available under the CC BY-SA 4.0 license; additional terms may apply. Images, videos and audio are available under their respective licenses.