“Investors know that climate change is a threat that some companies aren’t taking seriously enough. They need information that lets them better understand climate risks and opportunities to see who they can trust to thrive in a low-carbon future economy.”
–Alex Martin, Senior Policy Analyst, Americans for Financial Reform Education Fund
AFREF, alongside 34 other organizations, joined a letter The Consumer Federation of America (CFA) submitted on June 7th to the Securities and Exchange Commission (SEC) raising concerns about the dire state of financial reporting in Corporate America.
AFR submitted a comment letter to the Securities and Exchange Commission supporting the Commission’s proposals to require foreign security-based swap dealers and participants to abide by the SEC’s own set of capital and initial margin requirements as opposed to the less stringent Basel capital requirements.
The AFR Education Fund sent a letter to the Securities and Exchange Commission responding to a request for comment on regulatory options for money market funds in light of the collapse and bailout of many money market funds during the March 2020 coronavirus financial shock. The letter called for strong new regulatory steps to fix incentives that create financial instability for these products. It also questioned whether additional regulation should be extended to other types of fixed-income investment funds beyond money market funds narrowly defined, as there is evidence that these types of fund arrangements can also contribute to financial instability.
“The FSOC and Treasury must pivot from this meeting and push lagging regulators to turn today’s words on climate into bold and timely action. At its next meeting, the FSOC should take the concrete steps we recommend in the Climate Roadmap. There’s still time to act, but no more time to delay.”
— Alex Martin, Senior Policy Analyst, Americans for Financial Reform Education Fund
AFR Education Fund sent a comment to the SEC supporting the proposed elimination of regulatory exemptions in government securities markets. The letter also calls for the SEC to make further reforms in fixed income markets.
AFR has outlined issues around Payment for Order Flow, potential market manipulation by institutional investors, explosive growth in options trading volumes, the increasing gamification of stock trading by retail brokers, and a re-examination of broker capital rules.
If he’s confirmed to run the SEC, there will be a lot that needs fixing, says Marcus Stanley, who worked with Gensler as a Senate staffer after the financial crisis. Stanley is now the policy director of Americans for Financial Reform. “It’s an absolutely critical regulator,” says Stanley, about the SEC. But, he says, “the SEC as an organization needs some change.” He says perhaps more than any other regulator, the SEC “continued with its pre-2008 record of deregulation, even after the financial crisis.”