Citing Strategic Shift, SEC Withdraws 14 Biden-Era Proposals

According to the notice, the proposals cover areas such as cybersecurity, ESG disclosures and shareholder rights. 

The Securities and Exchange Commission has withdrawn 14 proposed rules and amendments issued between March 2022 and November 2023, under former President Joe Biden, continuing the agency’s regulatory shift under leadership appointed by President Donald Trump. 

According to a June 12 notice, the proposals covered areas such as cybersecurity, ESG disclosures and shareholder rights. The SEC stated it would release new proposed rules if the commission pursues future regulatory action in any of the areas.

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The commission also appointed Brian Daly as director of the SEC’s Division of Investment Management, effective July 8. He will replace Acting Director Natasha Vij Greiner, who will depart the SEC on July 4.

One of the rescinded rules was a 2022 proposal that would have required investment advisers, investment companies and other businesses, to provide disclosures regarding their investment practices regarding environmental, social and governance factors.

The SEC did not cite specific reasons for each withdrawal; it emphasized a broader reevaluation of its regulatory approach.

Other withdrawals included:

  • Safeguarding client assets: A proposed revamp of custody rules for investment advisers;
  • Cybersecurity: The rule would have required firms, investment advisers and broker/dealers to enhance cybersecurity defenses and report major incidents;
  • Best execution and order competition: The proposals would have redefined how brokers ensure retail investors get the best deal on trades and how those trades are routed; and
  • Outsourcing by investment advisers: The rule would have prohibited advisers from outsourcing certain services or functions without “conducting due diligence.”

“We are withdrawing these proposals because, as noted above, we no longer intend to issue final rules with respect to these proposals,” the SEC stated in the notice. “If the commission decides to pursue future regulatory action in any of these areas, it will do so by publishing a new proposed rule or other issuance consistent with the requirements of the Administrative Procedure Act, as applicable.”

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