SIFMA GC Says New SEC Approach Brings "Uncertainty" but "Opportunity"

SIFMA Executive Vice President and General Counsel Saima Ahmed said "the new Administration will take a far different posture toward regulation, enforcement and rulemaking," creating both "uncertainty" and "opportunit[y]." 

Speaking at SIFMA's 55th Annual Compliance & Legal Seminar, Ms. Ahmed said that the new administration appears poised to pause "much if not all" of the SEC's prior rulemaking—including approximately 20 pending SEC rules. She described the SEC's consideration on extending public comment periods for proposed rules as "prudent and necessary." 

Ms. Ahmed welcomed the SEC's recent decision to exempt the reporting of investors' personally identifiable information to the Consolidated Audit Trail ("CAT"). (See related coverage.) She emphasized that SIFMA warned of cybersecurity risks associated with storing sensitive investor data in the CAT.

Ms. Ahmed also noted concerns on compliance with SEC books and records requirements, in light of recent enforcement actions over firms' failure to properly capture off-channel communications. She said she hopes to "finally address the mysteries of the meaning of 'business as such' and whether the compliance standard for firms really is perfection, or rather, reasonableness."