Last week, SEC Commissioner Mark Uyeda addressed PLI’s 55th Annual Institute on Securities Regulation. In his remarks, Uyeda shared insights about the SEC’s disclosure rulemaking process, reflecting on his experiences from his 16-month tenure as commissioner.
During his tenure, the SEC has adopted five major disclosure rules, including rules relating to pay versus performance, clawbacks, amendments to rule 10b5-1, share repurchases, and cybersecurity. Additionally, he revealed that the SEC has four more rules in development.
Uyeda outlined four crucial factors that hold significant relevance to the rulemaking process. While the details of these issues were not expanded on, they offer a unique perspective into the SEC’s approach to regulating disclosure.
The Commissioner emphasized the importance of defining clear purposes for each rule. Gaining an understanding of each rule’s purpose allows for meaningful conversations surrounding the impact of the rules and fosters informed decision making during the drafting process.
Another point Uyeda highlighted was the use of empirical information during the rulemaking process. The right data significantly influences the decision-making process by providing a comprehensive understanding of potential rule impacts, benefits, and costs.
The full details of Commissioner Uyeda’s remarks are available here.