As noted in this excellent blog by Cooley’s Cydney Posner, Acting SEC Chair Mark Uyeda recently delivered this speech that included criticisms and recommendations for improving the SEC’s rulemaking process. Key points from the speech include:
- Criticism of the previous administration’s “rulemaking shortcuts,” with shortened comment periods (30 – 45 days instead of the recommended 60 days).
- Advocacy for reproposing rules when significant time has passed or significant changes are contemplated.
- Recommendation for “back-to-basics” steps in rulemaking, including:
– Clearly identifying the rule’s purpose and ensuring statutory authority.
– Engaging with stakeholders through meetings, roundtables and information requests. – Properly assessing effectiveness and costs through economic analysis. - Emphasis on respecting statutory authority limits and potentially withdrawing or re-proposing existing rules.
- Call for the SEC to be more methodical and steady in its rulemaking (“like a supersized freighter, not a speed boat”) rather than implementing rapid changes.
- Recommendation for more flexibility in the regulatory approach to facilitate innovation, moving away from the “inflexible approach” of the past four years.
- Focus on the SEC’s three-part mission: protecting investors, maintaining fair markets and facilitating capital formation.
Authored by
Broc Romanek