SEC Sets Comment Deadline for Proposed Updates to Ethical Conduct Standards

Comments on proposed amendments to the Supplemental Standards of Ethical Conduct for Members and Employees of the Securities and Exchange Commission are due by March 31, 2023. The Notice was published in the Federal Register.

As previously covered, the updated standards would (i) prohibit ownership of sector funds that maintain a policy of concentrating investments in entities under direct SEC regulation, (ii) remove the pre-clearance, reporting and holding period requirements for certain diversified investments, (iii) enhance accountability of employee securities transaction reporting by authorizing the SEC to automatically collect relevant information from applicable financial institutions and (iv) clarify that the limitation on purchasing securities that are part of an initial public offering ("IPO") until seven days after the IPO also applies to direct listings of securities. The proposal would apply to SEC employees as well as their spouses and any children under the age of 18.