Asfinancial regulatory reform takes its final shape in a conference committee led by Rep. Barney Frank, D-Mass., and Sen. Christopher Dodd, D-Conn., members of the committee have voted to allow the Securities and Exchange Commission to fund itself, according to FOXBusiness.com. The SEChas asked to be self-funded for quite some time because it would allow the agency to step up its enforcement and investigative efforts.
The provision allowing self-funding began in the Senate's version of the reform bill, but House members in the committee support it as well. Rep. Paul Kanjorski, D-Pa., said:
It's the right thing to do now if we really want to clean this up. For the next five or 10 years, we want a strong SEC.
Self-funding will allow the SEC to move more quickly on suspicious activity in the market, to review investment advisers more often than once every 10 years and give the agency more flexibility in long-term planning.
Though the agency wouldn't be subject to the congressional appropriations process if this provision passes, the SEC would still be subject to congressional oversight, according to Frank.