Recently, the United States Securities and Exchange Commission (SEC) released a new plan for the fiscal years 2022 to 2026. Like other releases from the SEC, this plan is open to public comment. The plan has three separate goals that it seeks to accomplish, including:
- Protecting working families against misconduct, manipulation, and fraud
- Formulating and implementing a robust regulatory framework that includes modern technology, updated business models, and attention to evolving markets
- Providing support for a skilled workforce, ensuring that everyone is fully equipped to play an integral role in a diverse, equitable, and inclusive workforce
Every few years, the SEC uses recent information from market and injury authorities to identify, prosecute and prevent behavior that could make it harder for investors and working-class families to participate fairly in the economic system.
During the next few years, the SEC will also seek to improve the delivery of disclosures to investors, making it easier for them to access the information they need to make decisions about their financial futures.
It is important to take a closer look at how the SEC is going to carry out these strategic goals.
Protect Working Class Families
The first goal is to protect working-class families against misconduct, manipulation, and for all. According to the Strategic Plan, the SEC is going to continue to examine, improve, and expand its enforcement programs, paying particular attention to how the market impacts individual investors.
The plan is going to target gatekeepers and authorities, making sure that they are held accountable for any misconduct. By improving its data collection, management, and analysis tools, the SEC will expand disclosures and analytics, using machine learning and artificial intelligence to enhance its oversight efforts.
The SEC is also going to expand its cybersecurity policies, climate risks, and in-house workforce to address issues plaguing individual investors, ensuring they have access to a fair and equitable system.
Develop a Stronger Financial Regulatory Framework
Next, the SEC will also seek to develop a stronger, more robust regulatory framework that will keep pace with changes in the markets, updated business models, and innovative technology. Some of the ways the SEC will accomplish this goal include:
- Updating the rules and regulations to address evolving markets, increasing transparency and private markets through enhanced regulations and better disclosures.
- Identifying systemic infrastructure risks that market participants and capital markets may face, including cryptocurrency and uncertainty created by the pandemic
- Improving the tools available to the SEC to more rapidly identify trends in market developments
Education and investor outreach is going to be at the core of how the SEC carries out this goal.
Support a Diverse, Equitable, and Inclusive Workforce
The SEC will continue to focus on increasing the diversity of its workforce. The agency will seek to promote and foster collaboration within SEC offices, ensuring that everyone is working toward one common goal. By addressing issues related to risk management while also modernizing the tools it has at its disposal, the SEC should be able to enhance its internal control system for the benefit of individual investors. A more inclusive, diverse, and equitable workforce will bring a variety of perspectives to the table that can make a significant difference and how the SEC creates a fair environment for working-class families.
SEC Compliance
At Colonial Stock Transfer, we would be happy to help you stay in compliance with SEC rules and regulations. Contact us to speak to a member of our team, and learn more about how our services can benefit you.