The Securities Industry and Financial Markets Association (SIFMA) has applauded the approval by member firms of the National Association of Securities Dealers (NASD) of the consolidation of regulation by the NASD and the New York Stock Exchange (NYSE) into a single regime.
“This is a pivotal victory which will deliver a more effective and efficient regulatory environment- a win for investors and for the financial industry,” says Marc Lackritz, co-CEO of SIFMA. “Firms of all shapes and sizes will reap the benefits of being overseen by a single regulator.”
“The most recent figures available show that compliance costs have doubled in a three year period, to more than $25 billion in 2005, up from $13 billion in 2002,” said Micah Green, co-CEO of SIFMA. “A single regulator, with one rulebook, one set of procedures and one set of examinations will eliminate regulatory confusion and reduce wasteful redundancy.”
SIFMA has been a vocal advocate of a single self-regulatory organization since 2000. After NASD and NYSE Regulation announced the consolidation proposal in December 2006, some of SIFMA’s individual sub-committees, including the Independent Firms Committee, Regional Firms Committee and Small Firms Committee endorsed the proposal, which may have influenced the NASD vote.