In Pensions & Investments, Dan O’Connor of Ropes & Gray discusses the Pace of SEC Rule Proposals
The pace of rule-making in recent months by the Securities and Exchange Commission (SEC) has been unprecedented. Stakeholders, dealing with a wide range of complex issues, are concerned the agency is moving too fast and not providing sufficient time for the public to offer comments.
“Comment periods are designed to help regulators pinpoint issues and craft more effective rules,” said former SEC trial attorney and securities & futures enforcement practice co-leader Dan O'Connor in Pensions & Investments. "By shortening up these time periods and by throwing so many different programs out at one time, you just remove the benefit of that process and make it more likely you're going to end up with regulations that aren't fit for real public consumption, that are going to be challenged and aren't going to survive at the end of the day."
Presently, the SEC is providing comment periods that are open for 60 days following publication on the SEC's website or 30 days upon publication in the Federal Register, whichever period is longer. Trade associations, public companies and lawmakers have taken issue with the length of SEC comment periods on many of its recent proposals.