Obama Seeks Big Budget Increases For SEC, CFTC

Apr 11 2013 | 12:12pm ET

Having given the Securities and Exchange Commission the authority to dig deeper into the hedge fund and private equity industries, President Barack Obama wants to give them the ability to do so.

Obama's proposed fiscal year 2014 budget, sent to Congress yesterday, would increase the SEC's funding by 27%, to $1.674 billion. The increase would allow the regulator to hire some 250 examiners to help in deal with the roughly 11,000 investment advisers now required to register with the agency. The increase would also allow the SEC to hire more industry experts to assist in probes.

The president also called for a 50% hike in funding for the Commodity Futures Trading Commission to $315 million, which would be paid for by charging fees to firms the agency regulates. The move "would bring the CFTC into line with nearly all other federal financial regulators, which are funding in whole or in part through user fees," the administration said.

That proposal isn't likely to go far with Congressional Republicans: Obama has proposed it three times previously to no avail; indeed, even former President George W. Bush pushed for it without success.

More means for regulators aren't the only part of Obama's $3.78 trillion budget that would impact hedge and private equity fund managers. The proposal would seek in raise more than $600 billion in new revenue, primarily by paring deductions taken by the highest-earning 3% of taxpayers.

Deductions for mortgage interest and charitable contributions would be capped at 28% under the proposal. And millionaires would face a minimum 30% tax rate.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.