SEC Extends Comment Period on Climate Disclosure Proposal
The SEC extended the public comment period on proposed rulemakings pertaining to climate-related disclosures for investors (until June 17, 2022) and reopened the comment periods on the proposed rulemaking to enhance private fund investor protection and on the proposed rulemaking to include significant Treasury markets platforms within Regulation ATS for 30 days. The SEC has faced increasing criticism from Washington lobbyists and industry groups for 30-day comment periods on recent proposals, the Wall Street Journal reported. The WSJ also reported that congressional Democrats joined 19 Republicans in signing a letter last month encouraging Chairman Gary Gensler to triple the comment period for the private fund adviser proposal.
Meanwhile, on May 6 at the Annual Conference on Financial Market Regulation, SEC Chair Gensler delivered remarks covering broad segments of financial market structure regulation. In his remarks, Gensler noted as markets modernize it is important to examine what regulatory changes are necessary to “enhance the efficiency, resiliency, and transparency of our markets.” Gensler touched on several areas including the resiliency of prime money market funds and challenges experienced in U.S. Treasury markets; disclosure in the climate change-related and cybersecurity space; and tools to increase efficiency in capital raising and among transactions within equities and fixed income markets. He noted the SEC has open projects in “the asset management space, including money market funds, open-end bond funds, and private funds.”