WASHINGTON, DC – The American Securities Association (ASA) signed onto two industry letters to the U.S. Securities and Exchange Commission (SEC), alongside numerous financial services and business trade associations, criticizing the SEC’s Predictive Data Analytics proposed rule. The trade associations called on the Commission to withdraw its proposal.
The first letter states that the Commission lacks statutory authority under section 211(h) of the Advisers Act and 15(1) of the Exchange Act because Congress never gave the Commission the authority to regulate “any activity” of a broker-dealer or advisor outside of the standards of conduct when providing recommendations or investment advice, wrote the Associations.
In another letter, the Associations argued that a flawed economic analysis raises the probability that a court would find the SEC rule to be ‘arbitrary and capricious’.
Read the American Securities Association, American Council of Life Insurers, American Investment Council, AIMA, Financial Services Institute, Financial Technology Association, Finseca, Investment Company Institute, Institute for Portfolio Alternatives, Insured Retirement Institute, LSTA, Managed Funds Association, National Society of Compliance Professionals, and U.S. Chamber of Commerce letter here.
Read the American Securities Association, American Benefits Council, Finseca, Institute for Portfolio Alternatives, Insured Retirement Institute, and National Association of Insurance and Financial Advisors letter here.
About the American Securities Association
American Securities Association, based in Washington, DC, represents the retail and institutional capital markets interests of regional financial services firms who provide Main Street businesses with access to capital and advise hardworking Americans how to create and preserve wealth. ASA’s mission is to promote trust and confidence among investors, facilitate capital formation, and support efficient and competitively balanced capital markets. This mission advances financial independence, stimulates job creation, and increases prosperity. The ASA has a geographically diverse membership of almost one hundred members that spans the Heartland, Southwest, Southeast, Atlantic, and Pacific Northwest regions of the United States.