Special Alert | Ambitious SEC near-term regulatory agenda

Issuances to include ESG and market modernization

Amy S. Matsuo

Amy S. Matsuo

ESG and Regulatory Insights Lead, KPMG LLP

The Securities and Exchange Commission (SEC) released its Spring 2021 Regulatory Agenda on June 11, 2021. Notable planned proposed and final rulemaking issuances include:

  • ESG-related disclosure requirements for climate risk and human capital (including workforce diversity and corporate board diversity) – expected October 2021.
  • Requirements for investment companies and investment advisers related to ESG factors, including claims and related disclosures – expected April 2022.
  • Enhanced disclosures regarding cybersecurity risk governance – expected October 2021.
  • Market structure modernization, including rules related to payment for order flow, best execution, market concentration – expected April 2022.
  • 10b5-1 affirmative defense provisions – expected October 2021.
  • Potential rules related to gamification, behavioral prompts, predictive analytics, and differential marketing – expected October 2021.
  • Transparency around stock buybacks, short sale disclosure, securities-based swaps ownership, and the stock loan market – multiple expected release dates.
  • Unfinished work directed by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, including, among other things, securities-based swaps and related rules, incentive-based compensation arrangements, and conflicts of interest in securitizations – expected April 2022.

The SEC Spring 2021 Regulatory Agenda is available here.

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