SEC Commissioner Hester M. Peirce questioned the agency's current data
collection process and analysis.
In a speech before the National Economists Club, Ms. Peirce
expressed concern that regulators' data collection requirements
are too far-reaching. According to Ms. Peirce, regulators are
increasingly expanding data requirements without adequately
considering (i) the underlying costs to regulators, market
participants and investors, (ii) the usefulness of the information,
and (iii) the potential cybersecurity risks. She:
- questioned whether the information
collected by Form PF is useful enough to outweigh the burden
of compliance on hedge funds and other private funds; and
- expressed concern that the
Consolidated Audit Trail (or "CAT") - which will collect
data from broker-dealers across the county - is costly and a
significant cybersecurity liability.
