2021-06-10T14:55:33-05:00 2020-07-31 042442519 EDELSTEIN AND COMPANY LLP 160 FEDERAL STREET 9TH FLOOR BOSTON MA 02110 990 2019-08-01 300406260 COMMITTEE ON CAPITAL MARKETS REGULATION INC C/O HAL S SCOTT COMM 8572426747 134 MT AUBURN STREET CAMBRIDGE MA 02138 HAL S SCOTT PRESIDENT/DIRECTOR 8572426747 2021-06-09 1 EUGENE BORGONZI P01269879 6172276161 2021-06-02 2019 2022-09-23 18:48:47Z HAL S SCOTT 134 MT AUBURN STREET CAMBRIDGE MA 02138 2660649 0 X WWW.CAPMKTSREG.ORG X 2007 DE TO RESEARCH AND ADDRESS SPECIFIC ISSUES AFFECTING THE REGULATION OF U.S. CAPITAL MARKETS. 5 4 15 4 0 0 2402203 2459254 0 20542 53364 38589 157968 91710 2613535 2610095 0 0 0 0 1525574 1562820 0 0 215400 880032 596660 2405606 2159480 207929 450615 3418412 3894911 177193 203077 3241219 3691834 X THE SPECIFIC PURPOSES FOR WHICH THE CORPORATION IS FORMED INCLUDE: 1) EXPLORING A RANGE OF ISSUES RELATED TO MAINTAINING AND IMPROVING THE COMPETITIVENESS OF THE US CAPITAL MARKETS; 2) RECOMMENDING POLICY CHANGES THAT SHOULD BE MADE, (CONTINUED ON SCHEDULE O) OR AREAS OF RESEARCH THAT SHOULD BE PURSUED; 3) PRESERVING AND ENHANCING THE BALANCE BETWEEN EFFICIENT AND COMPETITIVE CAPITAL MARKETS AND SHAREHOLDER PROTECTION; AND 4) PURSUING OTHER SIMILAR AREAS OF STUDY AND DISCUSSION. 0 0 1501641 0 20542 THE COMMITTEE ON CAPITAL MARKETS REGULATION, INC. IS AN INDEPENDENT AND NONPARTISAN RESEARCH ORGANIZATION DEDICATED TO IMPROVING THE REGULATION OF U.S. CAPITAL MARKETS. THE COMMITTEE'S RESEARCH PROVIDES POLICYMAKERS WITH A NONPARTISAN EMPIRICAL FOUNDATION FOR PUBLIC POLICY AS WELL AS EDUCATES THE PUBLIC ON THESE ISSUES. IN FISCAL YEAR ENDED JULY 2020, THE COMMITTEE RELEASED FIVE MAJOR REPORTS, INCLUDING: (I) AN ANALYSIS OF INVESTMENT STEWARDSHIP: MUTUAL FUNDS AND ETFS (MAY 2020), (II) THE RISE OF INDEX INVESTING: PRICE EFFICIENCY AND FINANCIAL STABILITY (MAY 2020), (III) SHORT-TERMISM, SHAREHOLDER ACTIVISM AND STOCK BUYBACKS (APRIL 2020), (IV) THE RISE OF DUAL CLASS SHARES: REGULATION AND IMPLICATIONS (APRIL 2020), (V) THE IMPACT OF PRIVATE EQUITY BUYOUTS ON PRODUCTIVITY AND JOBS (JULY 2020). THE EXPENSES ASSOCIATED WITH THESE REPORTS WERE LIKELY IN THE RANGE OF $300,000. THE COMMITTEE ALSO SUBMITTED EIGHT COMMENT LETTERS TO BANKING AND SECURITIES REGULATORS. 1501641 1 1 0 1 0 0 0 0 0 0 1 0 0 0 1 0 1 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 18 0 15 1 0 0 0 0 0 0 0 0 0 0 0 0 X 5 4 1 0 0 0 0 0 0 1 0 0 0 1 1 1 1 1 1 1 1 0 MA NY X CRISTINA LEONE 8572426747 134 MT AUBURN STREET CAMBRIDGE MA 02138 HAL S SCOTT PRESIDENT/DIRECTOR 30.00 X X 591667 0 16000 ROBERT GLAUBER DIRECTOR 0.50 X 0 0 0 ROBERT GLENN HUBBARD DIRECTOR 0.50 X 0 0 0 ANDREW KURITZKES DIRECTOR 0.50 X 0 0 0 JOHN L THORNTON DIRECTOR 0.50 X 0 0 0 JACQUELINE MCCABE VP/SECRETARY 20.00 X 75417 0 2263 CRISTINA LEONE TREASURER/CFO 16.00 X 30366 0 2879 JOHN A GULLIVER EXECUTIVE DIRECTOR 30.00 X 351746 0 5225 JON ONDREJKO SR. RESEARCH FELLOW 50.00 X 124558 0 6312 1173754 0 32679 3 0 1 0 BRIAN A JOHNSON PHD 925 CLINE PETTY WAY LAWRENCEVILLE GA 30043 ECONOMIC ADVISOR 124750 1 2459254 50554 2459254 OUTSOURCED RESEARCH CO 541900 20542 20542 20542 38895 38895 91710 0 91710 91710 91710 50248 50554 -306 -306 -306 2610095 20542 0 130299 X 1034569 662271 219176 153122 423899 358936 43866 21097 10917 7592 2000 1325 17481 12158 3202 2121 75954 52824 13914 9216 18712 18712 20459 20459 3000 3000 238625 221907 16718 32440 10534 21808 98 15673 7224 8449 190356 135819 30918 23619 33314 26859 1653 4802 19861 19861 13612 13612 MAINTENANCE 7906 7906 LICENSE FEES 2702 2517 185 2159480 1501641 442439 215400 226582 126757 2877495 3319192 50000 250000 64574 7641 75050 60400 64463 30235 45553 34228 3750 75408 96693 3418412 3894911 141385 145984 35808 57093 177193 203077 X 3114398 3493647 126821 198187 3241219 3691834 3418412 3894911 450615 0 X X 0 1 X 1 0 X 1795401 2076110 2249753 2402203 2459254 10982721 1795401 2076110 2249753 2402203 2459254 10982721 3778491 7204230 4606 21867 33240 211626 130605 401944 11384665 20542 0.63280 0.58450 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 8345 8345 2151135 2159480 257974 64494 0 0 247813 258675 270280 257974 1034742 1552113 67241 3000 15634 8345 94220 61953 64669 67570 64494 258686 388029 0 0 0 0 0 54944 20716 34228 9519 9519 0 34228 457B PLAN PAYABLE 57093 57093 2610095 0 2610095 0 2610095 2159480 0 2159480 0 2159480 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 FUNDRAISING ACTIVITIES N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 PART I, LINE 3: ACCRUAL METHOD OF ACCOUNTING WAS USED TO ACCOUNT FOR EXPENDITURES PART III ACCOUNTING METHOD: FORM 990, SCHEDULE F, PART I, LINE 3 THE ORGANIZATION RECEIVED A CONTRIBUTION FROM A FOREIGN CORPORATION LOCATED IN THE REGION OF EUROPE. NO EXPENDITURES WERE MADE IN THIS REGION IN ORDER TO OBTAIN THESE CONTRIBUTIONS. X 1 1 X X X X 0 0 0 0 0 0 0 0 0 HAL S SCOTT PRESIDENT/DIRECTOR 541667 0 50000 0 0 0 16000 0 0 0 607667 0 0 0 JOHN A GULLIVER EXECUTIVE DIRECTOR 297072 0 25000 0 29674 0 0 0 5225 0 356971 0 0 0 PART I, LINE 1A FIRST CLASS TRAVEL IS PROVIDED FOR HAL S. SCOTT, PRESIDENT, IN THE CASE OF LONG TRIPS WHERE PRIVACY IS NEEDED FOR WORKING ON CONFIDENTIAL DOCUMENTS, WHEN BUSINESS CLASS TICKETS ARE NOT AVAILABLE, OR A FREE UPGRADE TO FIRST CLASS IS AVAILABLE. X 1 50554 MARKET QUOTES 0 0 0 FORM 990, PART VI, SECTION A, LINE 2 HAL S SCOTT & JOHN A. GULLIVER - BUSINESS RELATIONSHIP HAL S. SCOTT & JACQUELINE MCCABE - BUSINESS RELATIONSHIP HAL S. SCOTT & CRISTINA LEONE - BUSINESS RELATIONSHIP FORM 990, PART VI, SECTION A, LINE 8B THE ORGANIZATION IS A RELATIVELY SMALL ORGANIZATION AND HAD ONLY UP TO 5 BOARD MEMBERS AT ANY ONE TIME. THEREFORE, THERE ARE NO COMMITTEES. THE FULL BOARD ACTS ON ALL MATTERS DURING BOARD MEETINGS AND MINUTES ARE KEPT OF THOSE MEETINGS. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS REVIEWED THOROUGHLY BY THE CORPORATION'S OFFICERS BEFORE FILING. A COPY OF THE FORM 990 IS PROVIDED TO AND REVIEWED BY THE BOARD OF DIRECTORS BEFORE IT IS FILED. FORM 990, PART VI, SECTION B, LINE 12C ARTICLE VII OF THE CORPORATION'S BY-LAWS GOVERN CONFLICTS OF INTEREST. THE BY-LAWS DEFINE POTENTIAL CONFLICTS OF INTEREST AND SET OUT THE PROCESS FOR DISCLOSING POTENTIAL CONFLICTS OF INTEREST AND APPROVAL OF CONTRACTS AND TRANSACTIONS INVOLVING POTENTIAL CONFLICTS OF INTEREST. AT WEEKLY STATUS MEETINGS, ALL MAJOR ACTIVITIES OF THE CORPORATION ARE DISCUSSED BY THE CORPORATION'S OFFICERS WHERE ANY POTENTIAL CONFLICTS OF INTEREST CAN BE IDENTIFIED. IN ADDITION, EACH DIRECTOR AND EACH OFFICER IS REQUIRED TO COMPLETE AN ANNUAL CONFLICT OF INTEREST DISCLOSURE FORM. FORM 990, PART VI, SECTION B, LINE 15 THE PROCESS FOR DETERMINING COMPENSATION OF THE ORGANIZATION'S TOP MANAGEMENT (OFFICERS AND KEY EMPLOYEES) INCLUDED A REVIEW AND APPROVAL BY INDEPENDENT MEMBERS OF THE BOARD OF DIRECTORS WHO WERE PROVIDED A REPORT FROM AN INDEPENDENT PROFESSIONAL COMPENSATION CONSULTANT PROVIDING, INTER ALIA, COMPARABILITY DATA, AND THE BOARD'S DELIBERATION AND DECISION WERE CONTEMPORANEOUSLY MEMORIALIZED IN THE MINUTES OF THE BOARD MEETING. THE INDEPENDENT PROFESSIONAL COMPENSATION CONSULTANT WAS HIRED TO PROVIDE 2020/2021 COMPENSATION PLANNING INFORMATION UPDATES AS APPROPRIATE FOR THE FOLLOWING: HAL S. SCOTT JOHN GULLIVER JACQUELINE MCCABE CRISTINA LEONE FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, WHICH INCLUDE ITS CONFLICT OF INTEREST POLICY, AND ITS FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON WRITTEN REQUEST. FORM 990, PART IX, LINE 11G CONSULTANTS: PROGRAM SERVICE EXPENSES 193,713. MANAGEMENT AND GENERAL EXPENSES 11,132. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 204,845. PUBLIC RELATIONS: PROGRAM SERVICE EXPENSES 28,194. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 28,194. RECRUITING: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 5,586. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 5,586. FORM 990, PART XII, LINE 2C: SINCE THE BOARD OF DIRECTORS WAS COMPRISED OF UP TO ONLY 5 INDIVIDUALS AT ANY ONE TIME DURING THE YEAR, THE FULL BOARD ASSUMED RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND SELECTION OF AN INDEPENDENT ACCOUNTANT.