The chief financial officer in the U.S. has called for a major overhaul of the fastest growing companies at $ 4.2tn, and enacting laws to ensure that cash flows are disclosed and that they operate.
Gary Gensler, chairman of the Securities and Exchange Commission, said he wanted to ease and streamline the disclosure of fines, which has reached a critical juncture as corporations introduce new payroll schemes and manage their capital markets.
“It’s time to dump her and move on [private funds], ”Said Gensler, speaking at a conference in Washington on Wednesday organized by the Institutional Limited Partners Association, an investment watchdog.
“I wonder if a few friends have the same, consistent knowledge they need to make wise decisions,” he added. “I think we can promote a more transparent approach to billing and investment savings.”
The call to increase transparency and to enhance consumer security comes as more and more business companies add a few dimensions to their revenue and fines. Additional costs include fees for “managing” historical companies, “purchasing costs” for purchases or public donations, and “technical costs” for their professional purposes.
Gensler is mentioned a recent report by the Financial Times which highlighted the frustration of depositors with these components of additional fines, which may include the cost of renting private jets.
In a statement to the SEC, Gensler said in a statement that the goal was to reduce the cost of business transactions because business markets play a key role in all US financial markets. Private businesses and hedge funds together generate about $ 9tn in assets and charge about $ 250bn per year.
“Overall, it is a very important factor in our economy and our major markets. Hundreds of billions of dollars in fines and expenses are standing between investors and businesses,” Gensler said. “More competition and better visibility could significantly bring an important part of a larger market.”
Gensler also spoke about how the personal finance fund works and how it operates in the stock market and bonds as a viable component. “[Basic] the secrets of secret money are not readily available – not only to individuals, but also to investors. ”
The SEC chair also called for a change in so-called partial correspondence that allows corporate traders to communicate directly with private executives – a practice that could lead investors to charge very different fees, or have different currencies.
“This could create a midfield [investors] based on what they have discussed, “said Gensler.” Local research shows that similar pension plans always pay different confidentiality rates. Tree prices can be huge. ”
Supervisors of secret societies are required to oversee the reliable operation of their clients. But Gensler also noted that senior executives in the private sector often protect or modify some of these practices.
“Do not be mistaken. The content of the agreement to remove the role of federal fiduciary counselor is inconsistent with [the law], ”He said.
Igor Rozenblit, founder of Iron Road Partners consultancy and former SEC chief executive, said Gensler’s policy “could change personal business forever”.
“It would seem that all these laws would be given and implemented but this is the secret policy plan from Dodd-Frank,” he said. “There is also a great potential for unintended and unintended consequences. It is the only time that will show real results.”