On 12 June 2023, the SEC withdrew fourteen proposed rules from March 2022 to November 2023 that had been proposed when Gary Gensler served as Chair of the SEC. These withdrawn proposed rules had been targeted by the House Financial Services Committee. The SEC will not issue final rules for the proposed rules that are being withdrawn, and it will propose new rules if it intends to act on any of the subject areas.
The withdrawn proposals are:
- Substantial Implementation, Duplication, and Resubmission of Shareholder Proposals Under Exchange Act Rule 14a-8;
- Proposed Rule: Proposed Rule: Conflicts of Interest Associated with the Use of Predictive Data Analytics by Broker Dealers and Investment Advisers;
- Safeguarding Advisory Client Assets;
- Cybersecurity Risk Management for Investment Advisers, Registered Investment Companies, and Business Development Companies;
- Enhanced Disclosures by Certain Investment Advisers and Investment Companies About Environmental, Social, and Governance Investment Practices;
- Outsourcing by Investment Advisers;
- Prohibition Against Fraud, Manipulation, and Deception in Connection With Security-Based Swaps; Prohibition against Undue Influence over Chief Compliance Officers;
- Volume-Based Exchange Transaction Pricing for NMS Stocks;
- Regulation Best Execution;
- Order Competition Rule;
- Regulation Systems Compliance and Integrity;
- Cybersecurity Risk Management Rule for Broker-Dealers, Clearing Agencies, Major Security-Based Swap Participants, the Municipal Securities Rulemaking Board, National Securities Associations, National Securities Exchanges, Security-Based Swap Data Repositories, Security-Based Swap Dealers, and Transfer Agents;
- Supplemental Information and Reopening of Comment Period for Amendments to Exchange Act Rule 3b-16 Regarding the Definition of “Exchange”;
- Proposed Amendments to the National Market System Plan Governing the Consolidated Audit Trail To Enhance Data Security.
The House Financial Services Committee stated that, among other issues, some of the proposed rules would have made American capital markets less competitive.
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