SEC Actions

SEC Investor Advisory Committee – September meeting

The SEC Investor Advisory Committee (IAC) held a public meeting on September 21, 2022. Panel discussions included: (1) human capital management labor valuation and performance data; (2) proposed rule 10b-1 position reporting of large security-based swap positions / asset-based swaps; (3) schedules 13d and 13g beneficial ownership reports; and (4) ESG fund disclosure. The IAC also discussed recommendations on cybersecurity and climate disclosures, and accounting modernization.

Read the draft recommendations and view the webcast rebroadcast.

SEC publishes draft FY22-26 strategic plan for public comment

On August 24, 2022, the SEC published its draft FY22-26 strategic plan for public comment. The plan includes three key SEC goals: protect working families against fraud, manipulation and misconduct; develop and implement a robust regulatory framework that keeps pace with evolving markets, business models and technologies; and support a skilled workforce that is diverse, equitable and inclusive, and fully equipped to advance agency objectives.

Opens in new window(PDF :KB)Read the press release.

SEC charges 16 Wall Street firms with recordkeeping failures

On September 27, 2022, the SEC announced settlements with 15 broker-dealers and one affiliated investment adviser for the firms’ employees’ routine communications about business matters using text messaging applications on their personal devices. The SEC charged the firms with not maintaining or preserving the substantial majority of these off-channel communications.

Review the press release and SEC Orders.

SEC Rulemaking

SEC proposes amended standards for covered clearing agencies for U.S. Treasury securities and application of the broker-dealer customer protection rule with respect to U.S. Treasury securities

• On September 14, 2022, the SEC announced a proposal to amend the standards applicable to covered clearing agencies for U.S. Treasury securities to require such agencies have written policies and procedures requiring every direct participant of the agency submit for clearance and settlement all eligible secondary market transactions in U.S. Treasury securities to which it is a counterparty.
• Comments are due 60 days after publication in the Federal Register.

Opens in new window(PDF :KB)View the proposed amendments in their entirety.

SEC adopts pay versus performance disclosure rules

• On August 25, 2022, the SEC announced the adoption of amendments to its rules to require registrants to disclose information reflecting the relationship between executive compensation actually paid by a registrant and the registrant’s financial performance.
• Registrants must begin to comply with the new disclosure requirements in proxy and information statements that are required to include Item 402 executive compensation disclosure for fiscal years ending on or after December 16, 2022.

Read the press release, fact sheet and adopting release.

Department of Labor (DOL)

Interpretive Bulletin relating to the independence of employee benefit plan accountants

On September 6, 2022, the DOL published an Interpretive Bulletin relating to the independence of employee benefit plan accounts, setting forth guidelines for determining when a qualified public accountant is independent for purposes of auditing and rendering an opinion on the financial statements required to be included in the annual report filed with the DOL under ERISA.

Opens in new window(PDF :KB) Read the entire bulletin.

Digital Assets

White House releases framework for responsible development of digital assets

On September 16, 2022, the White House released a report that, based on recommendations from agencies across the government, advances the six key priorities identified in the Executive Order: consumer and investor protection; promoting financial stability; countering illicit finance; U.S. leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation.

Read the entire report.

SEC Division of Corporation Finance to add crypto assets office

On September 9, 2022, the SEC announced plans to add an Office of Crypto Assets and an Office of Industrial Applications and Services to the Division of Corporation Finance's Disclosure Review Program (DRP).

Read the press release.

SEC charges Kim Kardashian for unlawfully touting crypto security

On October 3, 2022, the SEC announced charges against Kim Kardashian for touting on social media a crypto asset security without disclosing the payment she received for the promotion. Kardashian agreed to settle the charges, pay $1.26 million in penalties, disgorgement, and interest, and cooperate with the Commission’s ongoing investigation.

Read the press release and SEC Order.