Securities and Exchange Commission (SEC)

Keep Politics Out of Portfolios

The overreach of the SEC & Biden Administration will harm public companies, farmers, struggling businesses, and the already fragile economy.

About

The focus of this project – “SEC Mission Creep” – is to shine a light on the incremental, but continuous, venturing by the SEC into areas of public policy for which it has no mandate or congressional authority. In the case of new climate-related disclosure regulations, for example, the SEC is straying from its mission by inserting itself unnecessarily into matters of climate change policy. 

If the Biden Administration has its way, the Securities and Exchange Commission (SEC) will soon force public companies to spend as much as $10.2 billion annually evaluating and reporting their direct and indirect impacts on climate. This was not the intention of lawmakers when they created the SEC after the Wall Street Crash of 1929. The purpose of this project – “SEC Mission Creep” – is to shine a light on the incremental, but continuous, overreach of the SEC.

The SEC was never intended to act as a climate regulator, but its latest proposal would mandate that public companies report on their direct greenhouse gas emissions, emissions from their use of electricity for steam, heat or cooling, and even indirect emissions from their suppliers and those who transport their goods. This has led to widespread criticism from elected officials and the business community who are highly concerned about the SEC’s attempt to stray from its mission by inserting itself unnecessarily into matters of climate change policy.

Trillion LOST in stock value.

Billion estimated COST

NO mandate or congressional authority.

Investors have already lost $5 trillion in stock value. Now is not the time for the SEC to create $10.2 billion in new regulatory costs by straying into an area where it has no business or mandate.

Among the many reasons this new regulatory overreach is bad policy are –

  • The SEC itself admits that its proposal has an estimated price tag of between $420,000 and $530,000 per year on average. Companies starting from scratch in reporting climate data could pay even more.
  • Everyday investors, including pension holders, will ultimately bear the cost of these regulations in the form of lower dividends and returns.
  • Individual investors will be faced with pages of information irrelevant to the financial performance of investments, unnecessarily complicating their investment decisions.
  • Global events show the U.S. needs to lead on energy policy and project economic strength. The SEC’s proposal could chill American economic activity. 

The Taxpayers Protection Alliance (TPA) is a non-profit non-partisan organization dedicated to educating the public through the research, analysis and dissemination of information on the government’s effects on the economy. TPA, through its network of taxpayers will hold politicians accountable for the effects of their policies on the size, scope, efficiency and activity of government and offer real solutions to runaway deficits and debt. Through blogs, commentaries, and special spending alerts, TPA will publish timely exposés of government waste, fraud, and abuse.  Recognizing the importance of reaching people through traditional and new media, TPA will utilize use blogs, Twitter, Facebook, and user generated videos to reach out to taxpayers and government officials. Ultimately recognizing that the greatest power of change rests with the millions of Americans across the country who are ready for a smaller more accountable government, TPA will be a catalyst for connecting taxpayers to their elected and non-elected officials.