SEC Issues Updated Fall 2023 Regulatory Agenda

Who may be interested: Registered Investment Companies, Investment Advisers

Quick Take: The Office of Information and Regulatory Affairs, a division of the Office of Management and Budget, recently issued the Fall 2023 Unified Agenda of Regulatory and Deregulatory Actions, which includes short- and long-term regulatory actions government agencies, including the SEC, plan to take. The SEC’s regulatory agenda provides insight into the SEC’s priorities and anticipated timing of actions; however, the timing of rule adoptions and proposals may vary and could come before or after dates listed in the regulatory agenda. The SEC’s regulatory agenda included 12 investment management-related rule proposals, each of which lists April 2024 as a target date for finalizing the proposal by the SEC.

When a new administration enters the White House (which could occur in January 2025), typically, a regulatory moratorium is ordered, which means no new rules are adopted and some rules finalized in the last days of the prior administration are stayed. In addition, under the Congressional Review Act, Congress and the President can act to reverse previously adopted rules without engaging in a new rulemaking analysis. As a result, most administrations attempt to finalize significant rulemakings at least six months before a potential change in administrations. Under the current schedule, the SEC would want all of the priority rules to be adopted and effective prior to July 18, 2024.

• Enhanced Disclosures by Certain Investment Advisers and Investment Companies about Environmental, Social, and Governance Investment Practices;
  
  
• Open-End Fund Liquidity Risk Management Programs and Swing Pricing; Form N–PORT Reporting;
  
  
• Outsourcing by Investment Advisers;
  
  
• Safeguarding Advisory Client Assets;
  
  
• Cybersecurity Risk Management for Investment Advisers, Registered Investment Companies, and Business Development Companies;
  
  
• Regulation S-P: Privacy of Consumer Financial Information and Safeguarding Customer Information; and
  
  
• Conflicts of Interest Associated with the Use of Predictive Data Analytics by Broker-Dealers and Investment Advisers (also see the following).

The SEC’s regulatory agenda also included new proposals which are slated to be proposed in October 2024, including a Fund Fee Disclosure and Reform proposal as well as a proposal concerning Exchange-Traded Products.

The SEC’s Regulatory Agenda can found here.