On July 8, the SEC issued a
statement on the Spring 2024 Regulatory Agenda from Chair Gary Gensler. Notably, the SEC updated two rules that will be slated for a second round of proposed rulemaking. First, the SEC will
consider reproposing
amendments or new rules under the Investment Advisors Act of 1940 to “improve and modernize the regulations on custody of funds or investments of clients by investment advisors.” This NPRM underwent two comment periods and will now see a second NPRM slated on or about October. Second, the SEC will
consider new
rules on potential conflicts affecting broker-dealers and investment advisers while using predictive data analytics, artificial intelligence, and machine learning. The SEC signaled it will commence a second NPRM in around October, as well. A full Agency Rule List for Spring 2024 can be found
here.
In the statement, Chair Gensler stated how, “[i]n every generation since the SEC’s founding 90 years ago, our Commission has updated rules to meet the markets and technologies of the times… to promote the efficiency, integrity, and resiliency of the markets… [using] robust public input regarding proposed rule changes.”
