September 09, 2022
The United States Securities and Exchange Commission recently released its draft strategic plan for fiscal years 2022 through 2026 for public comment.
The Strategic plan sets out the following three key objectives for the Securities and Exchange Commission (SEC):
- Protecting working families from fraud, manipulation and misconduct.
- Develop and implement a robust regulatory framework that keeps pace with changing markets, business models and technologies.
- Support a skilled workforce that is diverse, equitable and inclusive and fully equipped to advance agency goals.
The strategic plan identifies several initiatives that the SEC will pursue to achieve these three goals.
1. Protecting working families from fraud, manipulation and misconduct
To achieve this goal, the SEC will continue its current enforcement and review programs with an emphasis on protecting individual investors. The strategic plan emphasizes a renewed focus on accountability and deterrence initiatives, including efforts to hold those accountable, or gatekeepers, accountable for misconduct.
As part of the strategic plan, the SEC will also continue to improve its current data management and analytics framework and its use of market and industry data to prevent, detect and combat misconduct. This will include expanding the SEC’s disclosure and analytical tools and broadening machine learning and artificial intelligence to support its surveillance efforts and identify market developments and risks.
In response to increased investor demand for information related to, among other things, climate risk, cybersecurity health policies and labor, the strategic plan proposes that the SEC update its framework to better address these topics and is modernizing its systems to make disclosures public. easier to access for investors.
2. Develop and implement a robust regulatory framework that keeps pace with changing markets, business models and technologies
To achieve this goal, the strategic plan proposes to (1) update existing SEC rules and regulations to reflect these evolving markets, business models and technologies, including improving private market transparency and developing regulations to provide investor protection via a broad disclosure framework; (2) address systemic and infrastructure risks facing capital markets and market participants, including the risks posed by the rapid growth of crypto-assets and the pandemic, which will be pursued in part by seeking new authority of Congress; and (3) enhance the SEC’s expertise in market developments, trends, and products (such as cryptoassets, derivatives, and fixed income securities) and continue to focus on education and investor awareness.
3. Support a diverse, equitable and inclusive skilled workforce that is fully equipped to advance agency goals
The SEC will continue to focus on growing a diverse workforce, promoting collaboration within and across SEC offices, improving internal control and risk management capabilities, and modernizing of SEC technology.
Public comments on the strategic plan should be submitted no later than September 29, 2022. Morgan Lewis will continue to closely monitor the impact the strategic plan may have on clients.