Media
Contacts
Kathy Valentine
+1 (434) 951-5348
kathy.valentine@cfainstitute.org
Jessica Galehouse
+1 (434) 951-5376
jessica.galehouse@cfainstitute.org
CFA Institute Centre Statement on Proposed Changes to the U.S. Regulatory Structure
New York, March 28, 2008
− Kurt Schacht, CFA, managing director of the CFA Institute Centre
for Financial Market Integrity today said, “There are many regulatory
comments about reform flying around the sub prime debate. Clearly, any
reforms needed to address subprime and prevent a reoccurrence are
important. What is confusing however is that in the heat of the subprime
crisis, signals seem to be coming from all different directions on what
regulation is needed and who should oversee such changes. Let’s not
confuse this activity with the discussions that pre-date subprime on how
to make our markets and regulatory structure more efficient and
competitive. We have long supported regulatory rationalization.
Similarly, we support appropriate and prompt steps to deal with the
pending situation. What we wish to see avoided however, is an
uncoordinated rush of multiple agencies and Congress putting together a
further clutter of provisions to deal with subprime, whose costs and
impacts are not fully considered or integrated. Therefore, we urge
Congressional leaders, regulators, and other industry participants to not
jump to change or create new regulation unless we have carefully
considered the complex series of events, both in the United States and
abroad, that led to this crisis. Only then can we make the best judgment
on what adjustments are necessary and work with our overseas partners to
introduce and implement effective change.
Even more important, let’s not forget our long-term regulatory
objective. It is clear that the current regulatory system in the U.S.
needs restructuring. Our current functional model is inefficient,
duplicative and makes oversight and enforcement more difficult for
regulators and market participants, alike. We should avoid further
complicating the situation with a regulatory patchwork- in this instance,
short-term, uncoordinated reactions to subprime. Ultimately, we should
work for a unified regulatory structure that protects investors while
fostering market innovation and competitive position. Creating the
architecture for this long-term, regulatory position within global
markets is daunting but overdue.”
Additional Resources:
November
2007 comment letter to the U.S. Department of the Treasury on the
financial institution regulatory structure.
Self-Regulation
in Today’s Securities Markets: Outdated System or Work in
Progress?
CFA
Institute Centre for Financial Market Integrity
The CFA Institute Centre develops timely, practical solutions to
global capital market issues. Established in 2004, the CFA Institute
Centre builds upon the CFA Institute mission to lead the investment
profession globally by setting the highest standards of ethics, education
and professional excellence. It carries forward the organization’s
60-year history of standards and advocacy work, especially its Code of
Ethics and Standards of Professional Conduct for the investment
profession. More information may be found at www.cfainstitute.org/centre.
CFA
Institute
CFA Institute is the global membership association that
administers the Chartered Financial Analyst (CFA) and Certificate in
Investment Performance Measurement (CIPM) curriculum and exam programs
worldwide; publishes research; conducts professional development
programs; and sets voluntary, ethics-based professional and
performance-reporting standards for the investment industry. CFA
Institute has more than 94,000 members, who include the world’s 81,000
CFA charterholders, in 131 countries and territories, as well as 135
affiliated professional societies in 56 countries and territories. More
information may be found at www.cfainstitute.org. (Bloomberg users
can find CFA Institute at 497458Z).