SEC Chairperson Mary Schapiro testified at a February 17, 2011 hearing that the SEC has sufficient resources and time to write the rules and conduct the studies required of it by the Dodd-Frank reform legislation. During her testimony, before the Senate Committee on Banking, Housing and Urban Affairs, Schapiro explained that the SEC has been able to assign experienced staff members to work on these Dodd-Frank projects.
Nevertheless, Schapiro apprised the Committee that current budgetary constraints are compromising the SEC’s current performance of certain of its core functions. For example, the SEC cannot hire adequate numbers of examiners and cannot pay travel expenses necessary for SEC enforcement attorneys to function most effectively. Schapiro stated that lack of funding also has curtailed SEC investments in technology, to the detriment of the agency’s effectiveness in many important areas.
Chairperson Shapiro warned the Committee that, although the SEC is coping well with its Dodd-Frank responsibilities so far, increased funding will be necessary for the SEC to meet some of its future obligations under that legislation. These include Dodd-Frank requirements that the SEC examine hedge funds, municipal advisers, and various regulated entities involved in the swaps markets.