Jamie McGinnis Discusses Efforts in the U.S. Congress to Overturn SEC and DOL Rules

Ignites reports that members of the U.S. Congress, using the Congressional Review Act, are looking to unwind recently enacted and likely to be adopted rules by Federal agencies, including by the U.S. Securities and Exchange Commission and the U.S. Department of Labor. These lawmakers are taking procedural steps ahead of, what they hope, will be a Republican victory in the 2024 U.S. Presidential election.

Asset management counsel Jamie McGinnis noted in the article that SEC proposed rules relating to registered fund liquidity/swing pricing, fund and adviser ESG disclosure, the predictive data analytics, and the custody rule reforms would likely be subject to a Congressional Review Act resolution if adopted, so any planned SEC adoption of those proposals would likely be before the anticipated mid-summer CRA deadline. Jamie also identified other rules affecting funds and advisers that could have broader bipartisan support and survive a change in power at the White House, including the SEC’s cybersecurity proposals and amendments. He also discussed why he believes the Congressional Review Act deadline for this Congress is likely to fall in the mid-summer rather than late May, as some commentators had previously speculated.