The U.S. Securities and Exchange Commission published virtual remarks by Commissioner Mark T. Uyeda to the Harvard Law School Program on International Financial Systems Japan–U.S. Symposium, setting out his case for regulatory restraint and arguing that corporate disclosure requirements, including sustainability and ESG-related disclosures, should remain anchored in financial materiality. Speaking in his personal capacity, Uyeda warned against regulators using indirect tools such as reputational risk frameworks or prudential measures for nonbank financial institutions to steer market behaviour, and against using financial regulation to pursue political or social objectives. Uyeda pointed to the resumption of regular bilateral dialogues between the SEC and Japan’s Financial Services Agency (JFSA) in April 2025 as a mechanism to deepen coordination on regulatory developments across areas including market supervision, accounting and auditing, multilateral engagement through the International Organization of Securities Commissions and the Financial Stability Board, and cross-border enforcement; a planned second dialogue in October 2025 did not occur due to the U.S. government shutdown. On sustainability reporting, he cited Chairman Paul Atkins’ view that non-material, non-financial metrics should not be embedded in accounting standards or issuer disclosure mandates, while noting that the SEC’s existing framework already requires disclosure of all material information, which can include climate or sustainability-related matters when financially material. Uyeda said the next SEC-JFSA dialogue is expected in early 2026 and framed sustainability disclosure as an area where the SEC seeks to find more common ground with Japan.
U.S. Securities & Exchange Commission 2025-11-21
U.S. Securities and Exchange Commission Commissioner Uyeda urges regulatory restraint and a financial materiality standard for sustainability disclosures while highlighting revived SEC-JFSA dialogue
SEC Commissioner Mark T. Uyeda, speaking at the Harvard Law School Program on International Financial Systems Japan–U.S. Symposium, urged regulatory restraint, emphasizing corporate disclosures should focus on financial materiality. He warned against using financial regulation for political or social aims and stressed the importance of SEC-Japan Financial Services Agency dialogues for regulatory coordination. Uyeda noted the SEC's framework already requires disclosure of all financially material information, including climate-related issues.