In remarks to the Investment Company Institute’s 2025 Investment Management Conference, U.S. Securities and Exchange Commission Acting Chairman Mark T. Uyeda laid out a “blueprint” to reset the SEC’s rulemaking approach, centered on longer and more meaningful public engagement and a greater willingness to re-propose, pause, or withdraw rules where the process or evidentiary record is weak. Uyeda argued that significant rulemakings should generally provide at least a 60-day comment period and that the SEC should more often re-open comment files or re-propose rules when substantial changes are contemplated. He also called for clearer problem definition and stronger economic analysis, asked staff to develop recommendations to update “small entity” definitions for funds and advisers that have not been revised for more than 25 years, and raised the prospect of withdrawing or re-proposing existing proposals on safeguarding advisory client assets, outsourcing by investment advisers, ESG disclosures for funds and advisers, and digital engagement practices. On safeguarding, he asked staff to work with the SEC’s crypto task force on alternatives including withdrawal, citing concerns that the proposal would extend custody requirements to virtually any asset, including crypto; he also directed staff to develop recommendations on re-proposing aspects of the recently adopted Form N-PORT reporting requirements and noted staff is considering recommending an extension of the effective date for recent Form N-PORT amendments. The remarks also pointed to a Division of Investment Management staff review that identified recurring non-compliance with website posting and hyperlinking requirements under layered disclosure regimes, and instances where exchange-traded funds did not post required rule 6c-11 information such as historic premium and discount data. Looking ahead, Uyeda said the SEC should renew its focus on fraud targeting seniors, including reconvening “senior summits” with state securities regulators and the Financial Industry Regulatory Authority, and he directed staff to prioritize review of exemptive applications seeking ETF share class relief while calling for closer coordination with the Department of Labor and state insurance regulators on retirement-related product development.
U.S. Securities & Exchange Commission 2025-03-17
U.S. Securities and Exchange Commission acting chair outlines blueprint for longer comment periods and possible rework of key investment management rules
U.S. SEC Acting Chairman Mark T. Uyeda proposed revising the SEC's rulemaking approach, emphasizing extended public engagement and reconsideration of rules with weak evidence. Uyeda advocated for a 60-day comment period for significant rulemakings and suggested re-opening comment files or re-proposing rules when substantial changes are needed. He also highlighted the need for clearer problem definitions, stronger economic analysis, and updates to "small entity" definitions, while addressing issues related to safeguarding advisory client assets and compliance with disclosure requirements.