Hearing scheduled on SEC's new FOI exemption

Congressman Barney Frank, chairman of the House Financial Services Committee, announced Wednesday that the committee will hold a hearing in September to explore concerns raised about the provision of the Wall Street Reform and Consumer Protection Act, which provides some exemption to the Securities and Exchange Commission regarding the Freedom of Information Act.

The exemption, which was first reported last week by Fox Business Network, concerns business journalists covering the regulatory agency.

The provision of the new law which addresses this issue was originally requested by SEC Chairwoman Mary Schapiro and by former SEC Chairman Christopher Cox. In the Senate, Sen. Chris Dodd (D-Conn.) and Sen. Richard Shelby (R-Ala.) included the provision in a manager’s amendment which was not adopted in the Senate, but which became part of the base text of the bill before it went to the conference committee.

“Given the serious questions that have been raised about the impact this provision could have on access to important information about financial transactions, I will hold a hearing of the Financial Services Committee when Congress returns in September,” said Frank in a statement.  “I will convene the hearing on September 23rd.  This should provide ample time to take corrective legislation action if it is needed.”

Sept. 23 is the first practical day for a hearing of the full committee due to the short legislative week beginning on Sept. 13, and because of Yom Kippur on Sept. 18.