As an investment professional working for a registered investment advisor, I am required to do, among other things, the following:
-report my holdings on a quarterly basis
-obtain pre-clearance on some trades
-recognize our 'restricted' list of securities and NOT trade in any such security on that list
These standards and restrictions are common among firms conducting themselves in an ethical, above-board manner, especially those following rules and guidelines put forth by organizations such as the CFA Institute (of which I am a member). There are no such restrictions for investments in open-ended mutual funds or bank certificates of deposits, which are (other than my home) the whole of my investment portfolio.
I think the proposed legislation is great. I suspect it will never pass.
A wide variety of elected and government officials in this country should be bound by rules, regulations and guidelines like those by which my investment conduct is bound. Doing so is for the better protection of the investment public, and the greater public. Assuming the proposal is shot down, I recommend the proposal be amended to allow a wide range of investment and no restrictions on trading, with the understanding that all trades by an investor, for their own account or where they have a beneficial interest, be pre-cleared by some central clearinghouse, and be immediately disclosed to the public. Further, the full investment holdings of every politician, judge and federal official be fully disclosed, to the penny with supporting bank and brokerage statements, on a quarterly basis. Holdings in open-ended mutual funds and bank certificates of deposit need not be reported.
Want to hide your money? Here's a way. Want to trade as you please? Here's a way. Want to NOT report? Here's a heavy fine, payable now, and to include a disgorgment of all profits. We'll see who the honest folk are, and who is operating in the shadows...