SEC Leadership

SEC announces departure of Investor Advocate Rick A. Fleming

On May 27, the SEC announced Investor Advocate Rick A. Fleming will depart the agency after more than eight years of service. Mr. Fleming was appointed in February 2014 to be the first director of the Office of the Investor Advocate at the Commission.

Read the press release.

Senate conducts SEC Commissioner nomination hearings – Jaime E. Lizarraga and Mark Toshiro Uyeda

On June 8, the Senate Committee on Banking, Housing, and Urban Affairs advanced the nominates of Jaime E. Lizarraga, of Virginia, and Mark Toshiro Uyeda, of California, to be members of the Securities and Exchange Commission. The next step is confirmation by the full Senate.

View the status of Mr. Lizarraga’s Senate confirmation.

View the status of Mr. Uyeda’s Senate confirmation.

SEC announces eight new Investor Advisory Committee members

The new members, who will serve four-year terms, include:

• James Andrus, Interim Managing Investment Director, Board Governance & Sustainability, CalPERS
• Gina-Gail S. Fletcher, Professor of Law, Duke Law School
• Colleen Honigsberg, Associate Professor of Law, Stanford Law School
• Christine M. Lazaro, Professor of Clinical Legal Education, St. John’s University School of Law; Of Counsel, Law Offices of Brent A. Burns LLC
• Andrew Park, Senior Policy Analyst – Hedge Funds and Private Equity, Americans for Financial Reform
• Dr. David L. Rhoiney, Staff General Surgeon, U.S. Navy
• Paul F. Roye, Retired, Former Senior Vice President and Senior Counsel, Fund Business Management Group, Capital Research and Management Company
• Brian L. Schorr, Partner and Chief Legal Officer, Trian Fund Management L.P.

View the press release.

Access the June 9 meeting materials.

SEC Rulemaking

SEC proposes to enhance disclosures by certain investment advisers and investment companies about ESG investment practices

On May 25, the SEC proposed amendments to rules and reporting forms “to promote consistent, comparable, and reliable information for investors concerning funds’ and advisers’ incorporation of environmental, social, and governance (ESG) factors.”

Read the press release and rule proposal.

SEC proposes rule changes to prevent misleading or deceptive fund names

On May 25, the SEC proposed amendments “to enhance and modernize the Investment Company Act “Names Rule” to address changes in the fund industry and compliance practices that have developed in the approximately 20 years since the rule was adopted.”

Read the press release and rule proposal.

SEC updates electronic filing requirements

On June 3, the SEC announced that it adopted amendments to require certain forms that currently are permitted to be filed or submitted in paper format to be filed or submitted electronically. The amendments also amend certain forms to require structured data reporting and remove outdated references.

Read the press release and final rule.

LEGISLATION

A Senate bill called the “INDEX Act” would govern proxy voting by index funds

On May 18, the INDEX Act was introduced in the Senate. The sponsor of the bill, Senator Sullivan of Alaska said “The INDEX Act would require investment advisors of passively-managed funds to vote proxies in accordance with the instructions of fund investors – not at the discretion of the advisor. The advisor would be responsible for passing through the proxies, collecting the instructions, and dutifully voting according to the investors’ wishes.”

Review the INDEX ACT bill.

DOL

Department of Labor releases final rule on changes for the 2022 Form 5500 Series Annual Return/Report

On May 20, the DOL Employee Benefits Security Administration (EBSA), the IRS and the Pension Benefit Guaranty Corp. released a Federal Register Notice announcing changes to the Form 5500 Annual Return/Report of Employee Benefit Plan and Form 5500-SF Short Form Annual Return/Report of Employee Benefit Plan, and related instructions, which apply beginning with 2022 plan year reports.

Read the press release.

FINRA

May 6, 2022 Information Notice – March 2022 Options Disclosure Document

On May 6, FINRA issued an information notice advising member firms that the Options Clearing Corporation has issued the March 2022 Options Disclosure Document (ODD). The ODD contains general disclosures on the characteristics and risks of trading standardized options.

Review the Information Notice.

FINRA adopts amendments to TRACE reporting rule to require identification of portfolio trades (Regulatory Notice 22-12)

Effective May 15, 2023, FINRA has adopted amendments to Rule 6730 (Transaction Reporting) to require members to append a modifier to a corporate bond trade that is part of a portfolio trade when reporting to FINRA’s Trade Reporting and Compliance Engine (TRACE).

Read the regulatory notice.