Sec. 403. Rulemaking requirements
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Section 23 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78w ), as amended by section 402, is amended by adding at the end the following: In this subsection, the term rulemaking does not include— a regulation issued in accordance with the formal rulemaking provisions of section 556 or 557 of title 5, United States Code; a regulation that is limited to agency organization, management, or personnel matters; a regulation promulgated pursuant to statutory authority that expressly prohibits compliance with this provision; and a regulation that is certified by the agency to be an emergency action, if such certification is published in the Federal Register.
When issuing a rulemaking under the securities laws, the Commission shall— clearly identify the nature and source of the problem that the rulemaking is designed to address, as well as assess the significance of that problem, to enable assessment of whether any new regulation is warranted; utilize the Chief Economist to assess the costs and benefits, both qualitative and quantitative, of the rulemaking and propose or adopt a rulemaking only on a reasoned determination that the benefits of the rulemaking justify the costs of the rulemaking; in assessing the costs and benefits of the rulemaking under subparagraph (B), utilize the Chief Economist to articulate the appropriate economic baseline against which to measure the likely economic impact of the rulemaking; identify and assess reasonable available alternatives to the rulemaking that were considered, including modification of an existing rulemaking, together with an explanation of why the rulemaking meets the objectives of the rulemaking more effectively than the reasonable alternatives; identify and assess available alternatives to the regulation that the Commission considered, including modification of an existing regulation, together with an explanation of why the regulation meets the regulatory objectives more effectively than the alternatives; ensure that any regulation is accessible, consistent, written in plain language, and easy to understand; and measure, and seek to improve, the actual results of regulatory requirements.
In deciding whether and how to regulate, the Commission shall assess the costs and benefits of reasonable available alternatives, including the alternative of not regulating, and choose the approach that maximizes net benefits, including by— consistent with the requirements of section 3(f) of this Act, section 2(b) of the Securities Act of 1933 ( 15 U.S.C. 77b(b) ), section 202(c) of the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–2(c) ), and section 2(c) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–2(c) ), considering whether the rulemaking, in addition to being in the interest of protecting investors, will promote efficiency, competition, and capital formation; evaluating whether, consistent with obtaining regulatory objectives, the regulation is tailored to impose the least burden on society, including market participants, individuals, businesses of differing sizes, and other entities (including State and local governmental entities), taking into account, to the extent practicable, the cumulative costs of regulations; and evaluate whether the rulemaking is inconsistent, incompatible, or duplicative of other Federal regulations.
In issuing any final regulation, the Commission shall— explain the nature of comments received by the Commission; and provide a response to those comments, including an explanation of any changes that were made in response to those comments and the reasons that the Commission did not incorporate any concerns related to the potential costs or benefits in the final regulation. The Commission shall— make available to the public in an online depository all economic analyses, including analyses on market failure, performed by the staff of the Commission, including such analyses performed by the Division of Economic and Risk Analysis, with respect to a rulemaking under the securities laws; and take appropriate steps to protect any non-public data contained in any economic analysis included in the online depository described in subparagraph (A), which may include anonymizing, aggregating, or employing other measures as the Commission deems appropriate to protect such data while also providing for its public availability. .
It is the sense of Congress that the Public Company Accounting Oversight Board should be subject to the requirements of subsection
(f)of section 23 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78w ), as added by paragraph (1). Section 2(b) of the Securities Act of 1933 ( 15 U.S.C. 77b(b) ) is amended by inserting , when considered individually or cumulatively with other rules or regulations or other proposed rules or regulations, before will promote . Section 23(a)(2) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78w(a)(2) ) is amended, in the second sentence, by inserting , when considered individually or cumulatively with other rules or regulations or other proposed rules or regulations, after which would . Section 2(c) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–2(c) ) is amended by inserting , when considered individually or cumulatively with other rules or regulations or other proposed rules or regulations, before will promote . Section 202(c) of the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–2(c) ) is amended by inserting , when considered individually or cumulatively with other rules or regulations or other proposed rules or regulations, before will promote .
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- 15 USC 80b–2(c)
- 15 USC 80a–2(c)
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