This week, the SEC posted its fiscal year 2013 Congressional Budget request for $1.566 billion, which is an increase of $245 million above the agency's FY 2012 appropriation. In this request, the SEC made its case for the record-high budget, stating it was needed to achieve multiple, high-priority initiatives:

(1) adequately staff mission essential activities to protect investors; (2) prevent regulatory bottlenecks as new oversight regimes become operational and existing ones are streamlined; (3) strengthen oversight of market stability; and (4) expand the agency's information technology (IT) systems to better fulfill our mission.

The SEC stated that the requested budget for FY 2013 would support a total of 1,545 positions in the Enforcement program, which represents an increase of 191 positions above FY 2012 levels and 262 more positions than in FY 2011.

In its proposed budget issued yesterday, the White House proposed that Congress appropriate the full $1.566 billion requested by the SEC. However, as indicated by the budget battles in recent years, the chances of the SEC actually receiving $1.566 billion from Congress are probably quite remote. Republicans still control the House of Representatives and have been very skeptical of the need for greater resources at the SEC, despite the agency's new responsibilities mandated by Dodd-Frank and a public that is calling for more and more action in the enforcement area.

Topics