On 31 March 2025, the House Committee on Financial Services (Committee), in a letter to Acting Chairman of the US Securities and Exchange Commission (SEC), Mark Uyeda, identified a series of proposed and adopted rules that the SEC should withdraw or rescind. The letter notes the Committee’s view that the SEC, under the prior Chair, had lost sight of its mission. The identified proposals and rules represent significant rulemaking efforts on the part of the SEC, many of which were controversial and subject to significant industry opposition. The specific proposals identified are the following:
- Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure;
- Short Position and Short Activity Reporting by Institutional Investment Managers;
- Reporting of Securities Loans;
- Pay Versus Performance;
- Investment Company Names;
- Form N-PORT and Form N-CEN Reporting; Guidance on Open-End Fund Liquidity Risk Management Programs;
- Conflicts of Interest Associated with the Use of Predictive Data Analytics by Broker Dealers and Investment Advisers;
- Open-End Fund Liquidity Risk Management Programs and Swing Pricing;
- Regulation Best Execution;
- Order Competition;
- Position Reporting of Large Security-Based Swap Positions;
- Regulation Systems Compliance and Integrity;
- Outsourcing by Investment Advisers; and
- Enhanced Disclosures by Certain Investment Advisers and Investment Companies about Environmental, Social, and Governance Investment Practices.
While the Committee does not have the authority to compel the SEC to take action on any if these final or proposed rules, the letter is a strong indication of support for an overall deregulatory environment and could provide a blueprint for SEC regulatory policy once Paul Atkins is confirmed.
