Reshaping the Financial Regulatory System

Long Awaited, Now Crucial
Monday, April 20, 2015
The Volcker Alliance

In this report, the Volcker Alliance lays out a vision to reshape the financial regulatory system for the 21st century. The system for regulating financial institutions in the United States is highly fragmented, outdated, and ineffective. A multitude of federal agencies, self-regulatory organizations, and state authorities share oversight of the financial system under a framework riddled with regulatory gaps, loopholes, and inefficiencies. Virtually every post-mortem of the financial crisis cites the convoluted regulatory system as a contributing factor in the financial meltdown. The Alliance’s aim is a simpler, clearer, adaptive, and resilient regime that is on par with the modern regulatory frameworks of other developed countries, has a mandate to deal with the financial system as it exists now, and is capable of keeping pace with the evolving financial landscape. The recommendations detailed in this report span oversight and surveillance, supervision and regulation, and market integrity and investor protection. The Alliance makes the case that a thoughtfully reconfigured regulatory system is a necessary step toward effective regulation and the long-term stability of the financial system.

Read the Report

Fast Fact

9%

The SEC examines annually only 9 percent of the 11,000 investment advisers and 11 percent of the 10,000 investment companies it is charged with supervising.