Acting SEC Chair Spotlights Changing Agency Priorities
Commentary by Steven Lofchie
Acting SEC Chair Mark T. Uyeda argued that the agency must "prioritize effective and cost-efficient regulations that respect the limits of our statutory authority," return to a "back to the basics" approach to rulemaking, enhance engagement with stakeholders and embrace product innovation.
In remarks to the Investment Company Institute's 2025 Investment Management Conference, Mr. Uyeda highlighted the following areas:
SEC Rulemaking. Mr. Uyeda suggested a "back to the basics" approach for SEC rulemaking, starting with identifying the rule's purpose. He emphasized the importance of evaluating a rule's effectiveness and cost, calling for a return to "a smoother regulatory course" guided by methodical decision-making. He also argued that that the SEC should "restor[e] historical rulemaking comment periods," including a minimum 60-day comment period. He further endorsed the practices of "re-proposing rules" and "re-opening the comment file for a rule proposal," when necessary. Mr. Uyeda pointed out that under this blueprint, some existing rule proposals, and recently adopted rules, may need to be reconsidered.
Investor Protection. Mr. Uyeda explained that the Commission's role in protecting investors includes both enforcement and proactive compliance. In particular, he stressed the importance of agency guidance, citing the recent Accounting and Disclosure Information Publication, to help firms address common issues and ensure smooth transitions to new requirements. Mr. Uyeda highlighted "fraud targeting seniors" and suggested reinstating "senior summits" to address evolving financial threats in a digital world.
Facilitating Innovation and Retirement Savings. Mr. Uyeda advocated for a more "flexible" regulatory approach to encourage innovation. He pointed out that the "exemptive application process" can serve as a "laboratory" allowing the SEC to evaluate new investment products, as it did with ETFs. Mr. Uyeda also underscored the need for collaboration between regulators and industry leaders to develop investment products that help Americans "successfully manage their finances in retirement."
Commentary
Acting Chair Uyeda is spot-on in focusing on the rulemaking process. Many of the substantive problems in the rulemaking regime of the former Administration (including its numerous defeats in the courts for either exceeding it legislative authority or failing to comply with the Administrative Procedure Act) arose because it rushed through rules and ignored public comments. (Here's one example: Why Comment Periods Matter: The SEC Rulemaking on Securities Loans.)