WASHINGTON, D.C.—Benjamin Schiffrin, Director of Securities Policy, issued the following statement in connection with Better Markets’ new Fact Sheet, “Despite Growing Responsibilities SEC Continues to be Severely Underfunded, Threatening Markets and Investors”:

“The U.S. capital markets are the broadest, deepest, most liquid markets in the world because they are well-regulated.  But an underreported threat to those markets is the fact that the SEC, which is responsible for ensuring that they remain well-regulated, is severely underfunded.  The scope of the SEC’s responsibilities has increased tremendously in recent years, yet the SEC barely has more full-time employees now than it did in 2017.

“The last five years paint an especially stark picture.  The number of regulated entities that the SEC oversees has increased from 28,000 to 33,000.  The number of reporting companies subject to SEC oversight has increased from 7,600 to 8,300, and the number of private funds has increased from 36,000 to 56,000.  The number of registered investment advisers has increased from 13,100 to 15,400, and the number of clients of registered investment advisers has increased from 33 million to 54 million.  By almost any metric, the SEC’s funding has not kept pace with the growth of the industry that it regulates.

“To continue overseeing the growing and ever-more complex markets, the SEC must be provided with additional resources so that it may continue to fulfill its mission of protecting investors; maintaining fair, orderly, and efficient markets; and facilitating capital formation.”

You can find the fact sheet here.

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.