Press Releases

Release Date: May 17, 2007

Contact:
Travis Larson, (202) 216-2057, tlarson@sifma.org

Single SRO Should Adopt Principles-Based Rulebook for Regulation

Washington, D.C., May 16, 2007 – The Securities Industry and Financial Markets Association (SIFMA) today testified before the Senate Banking, Housing and Urban Affairs Subcommittee on Securities, Insurance and Investments in a hearing to examine the consolidation of NASD and the regulatory functions of the New York Stock Exchange.  At the hearing, Marc Lackritz, SIFMA president and CEO, addressed the inherent values of a combined SRO and suggested that the single SRO adopt a principles-based approach to regulation.    

“A principles-based approach to regulation involves a regulator moving away, where possible, from dictating how a firm should reach a desired regulatory outcome.  This approach considers first whether firms, supplemented by guidance as appropriate, could assume the responsibility to achieve the desired outcomes in the context of their business processes and existing supervisory obligations,” said Lackritz in is oral testimony.  “We suggest that a paradigm whose foundation is more clearly based on principles and the achievement of outcomes tied to those principles may better serve investors, the markets and its constituents,” he added.

To view the full written testimony, follow the URL below:

http://www.sifma.org/legislative/testimony/pdf/lackritz5-17-07.pdf

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The Securities Industry and Financial Markets Association brings together the shared interests of more than 650 securities firms, banks and asset managers. SIFMA's mission is to promote policies and practices that work to expand and perfect markets, foster the development of new products and services and create efficiencies for member firms, while preserving and enhancing the public's trust and confidence in the markets and the industry. SIFMA works to represent its members’ interests locally and globally. It has offices in New York, Washington D.C., and London and its associated firm, the Asia Securities Industry and Financial Markets Association, is based in Hong Kong.