InfoBytes Blog
SEC chair discusses resources allocations, oversight, and rulemaking
On April 2, SEC Chairman Jay Clayton issued a statement outlining the SEC’s approach to its allocation of resources, oversight, and rulemaking agenda. As previously covered by InfoBytes, the SEC issued guidance last month providing temporary relief and assistance to market participants impacted by the Covid-19 pandemic, including relief from certain notarization requirements and filing deadline extensions. Clayton noted, however, that despite these challenges, the SEC recognized that it is imperative that issuers keep investors equipped with material information, and accordingly has urged public companies to “continue to evaluate their obligations to make materially accurate and complete disclosures in accordance with the federal securities laws.” Among other things, Clayton also reiterated that, while public comments closed recently on several proposed rulemaking actions, the SEC will “not take final action on these items in the coming weeks to allow potential commenters more time to submit comments for consideration if needed.” The SEC does not expect to move forward on any of these proposed actions prior to May 1.
Relatedly, Clayton discussed Regulation Best Interest (Reg BI) and Form CRS, which establish new standards of conduct for broker-dealers and related persons when recommending securities transactions or investment strategies to retail customers. Clayton highlighted the extensive engagement efforts related to the implementation of Reg BI and Form CRS, and encouraged continued engagement with investors and other market participants on these regulatory enhancements. Clayton noted that, in light of these engagement efforts, the June 30 compliance date remains appropriate, and provided a number of resources to assist firms in understanding the new requirements and implementation process.