General Information & Client Services
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
October 06, 2017

The U.S. Department of the Treasury released a report detailing how to streamline and reform the U.S. regulatory system for the capital markets. The Treasury’s evaluation of current capital market regulations found that significant reforms can be undertaken to promote growth and vibrant financial markets while maintaining strong investor protection. This report is issued in response to the Executive Order 13772 issued by President Trump on February 03, which calls on Treasury to identify laws and regulations that are inconsistent with a set of Core Principles of financial regulation. This is the second report on the administration’s review of the core principles of financial regulation.

In the report, the Treasury identifies numerous ways to reduce the burden on companies that are looking to go public or stay public, while maintaining strong investor protections; these include streamlining disclosure requirements to reduce costs for companies while providing investors the information they need to make investment decisions and tailoring the disclosure and other requirements for companies going public based on their size. Additionally, the Treasury found that the federal financial regulatory framework and processes could be improved by evaluating the regulatory overlaps and opportunities for harmonization of SEC and CFTC regulation and by limiting imposing new regulations through informal guidance, no-action letters, or interpretation, instead of through notice and comment rulemaking. It also found that regulatory processes could be improved by reviewing the roles, responsibilities, and capabilities of self-regulatory organizations (SROs) and making recommendations for improvements.

The Treasury’s review of the derivatives market found the need for greater harmonization between the SEC and CFTC, more appropriate capital and margin treatment for derivatives, and resolution of cross-border frictions that fragment global markets. Additional recommendations in the report include:

  • Improving the oversight of financial market utilities (FMUs), such as by FSOC continuing to study the role FMUs play in the financial system and regulators considering appropriate risk management for FMUs to avoid taxpayer-funded bailouts
  • Repealing Sections 1502, 1503, 1504, and 953(b) of the Dodd-Frank Act
  • Investigating how to reduce costs of securities litigation for issuers with the goal of protecting all investors’ rights and interests
  • Increasing the amount that can be raised in a crowdfunding offering from USD 1 million to USD 5 million
  • Examining the impact of Basel III capital standards on secondary market activity in securitized products
  • Advancing U.S. interests and promoting a level playing field in the international financial regulatory structure


Related Links (PDFs)

Keywords: Americas, US, Securities, Capital Markets, Proportionality, Dodd Frank Act, FMU, US Treasury

Related Insights

IAIS Publishes Drafts of Revised ICP 8, ICP 15, ICP 16, and ICP 20

IAIS published the drafts of revised Insurance Core Principles on Public Disclosure (ICP 20), Investments (ICP 15), Enterprise Risk Management for Solvency Purposes (ICP 16), and Risk Management and Internal Controls (ICP 8), along with a revised draft of the glossary on enterprise risk management (ERM).

November 14, 2018 WebPage Regulatory News

MAS Amends Notice 637 on Capital Adequacy Requirements in Singapore

MAS published the final, revised Notice 637 on the risk-based capital adequacy requirements in Singapore.

November 13, 2018 WebPage Regulatory News

ESMA Updates Q&A on Implementation of CSD Regulation and MAR

ESMA updated questions and answers (Q&A) documents on the implementation of the Central Securities Depository (CSD) Regulation and Market Abuse Regulation (MAR).

November 12, 2018 WebPage Regulatory News

FSB Finalizes and Publishes the Cyber Lexicon

FSB published a cyber lexicon, following the public consultation earlier this year.

November 12, 2018 WebPage Regulatory News

SRB Updates Liability Data Reporting Template for 2019

SRB published version 2.7.1 of the Liability Data Reporting (LDR) Template.

November 12, 2018 WebPage Regulatory News

ECB to Conduct Comprehensive Assessment of Six Bulgarian Banks

ECB will undertake a comprehensive assessment of six Bulgarian banks. The exercise, comprising an asset quality review and a stress test, follows Bulgaria’s submission of a request to establish close cooperation with ECB on July 18, 2018.

November 12, 2018 WebPage Regulatory News

IMF Publishes Reports on the 2018 Article IV Consultation with Chile

IMF published its staff report and selected issues report under the 2018 Article IV consultation with Chile.

November 09, 2018 WebPage Regulatory News

PRA Issues PS27/18 on Implementing the Extension of SM&CR to Insurers

PRA published the policy statement PS27/18, which provides feedback to responses to the consultation paper CP20/18, on implementing the extension of the Senior Managers and Certification Regime (SM&CR) to insurers (Part 2).

November 09, 2018 WebPage Regulatory News

EBA Single Rulebook Q&A: First Update for November 2018

EBA published answers to seven questions under the Single Rulebook question and answer (Q&A) updates for this week.

November 09, 2018 WebPage Regulatory News

FED Finalizes the Large Financial Institution Rating System

FED finalized the new supervisory rating system for Large Financial Institutions (LFIs), to better align with the current supervisory programs and practices for these firms.

November 09, 2018 WebPage Regulatory News
RESULTS 1 - 10 OF 2204