The Securities and Exchange Commission (SEC) has already been busy this year, issuing several rule changes and amendments that have been available for public comment during various points throughout 2022. Now, the SEC has announced its regulatory agenda for Spring 2022. It is not indicative of anything specific, but it could give the public some idea of different rules that the SEC could address during the next few months. That way, companies can prepare accordingly.
No Regulation Can Be Static in a Dynamic Society
According to SEC Chair Gary Gensler, the economy is incredibly dynamic. There are lots of changes taking place in the business world, and the SEC has to make regulatory changes that foster growth in its markets. Even though the United States has the largest, most sophisticated, and most innovative capital markets in the world, according to the SEC, there are improvements that can be made. Regulations cannot be static if the economy is dynamic, and that is certainly the case in this situation. Because the core idea still rings true, the SEC is constantly looking for ways to improve the economic situation for public companies and shareholders.
The SEC Has Two Public Policy Goals This Spring
To that end, the SEC has two separate public policy goals that it will address during the latter half of 2022.
The first goal is to drive efficiency and capital markets. Even though it is important to make sure that shareholders are properly protected, it is also important to streamline the daily operations as quickly as possible. The SEC will look at some of the processes that companies need to follow to comply with regulatory operations. Then, it will find ways to increase that efficiency.
The other goal that the SEC has this spring is to modernize existing rules and regulations for today’s economy and technology. Many of the rules that companies have to follow were issued decades ago. Technology has come a long way during the past few decades, and the SEC is going to take a closer look at some of the rules that it has in place. There might be opportunities to automate certain processes to reduce the regulatory burden placed on companies and shareholders.
Adherence to the 3-Part Mission of the SEC
According to the SEC chair, the goal of these changes is to make sure the SEC adheres to its original three-part mission. The goals of the SEC include protecting investors, maintaining efficient markets, and facilitating capital formation. Even though the SEC believes that it is already doing that, administrators believe that there are ways to make the process better. Therefore, it is incumbent on public companies and shareholders to pay attention to any changes that the SEC might make this spring. Typically, changes are proposed and left open to public comment for a certain amount of time before the SEC ultimately decides whether it will implement the changes or not. This is an opportunity for everyone to make their voice heard.