Representing financial professionals, financial institutions and investors in investment loss, employment and disclosure matters, and in regulatory investigations nationwide.

24 Republican attorneys general take issue with SEC climate disclosure rules

On Behalf of | Jul 25, 2022 | Financial News

A group of 24 Republican attorneys general have joined together in opposition to the Securities and Exchange Commission’s proposed climate change disclosure rules, Financial Advisor reports.

The attorneys general submitted comments to the SEC calling the rules “regulatory overreach” and saying they were prepared to take legal action if the commission does not revise the regulations.

In April, the SEC announced its proposal requiring public companies to disclose climate-related information and explain how they intend to manage climate-related risks, including greenhouse gas emissions, that are likely to have a material impact on their business, results of operations, or financial outlook.

In their letter, the 24 attorneys general said the SEC’s proposal violates the recent ruling by the U.S. Supreme Court that limited the EPA’s authority to regulate greenhouse gas emissions. The officials said the court ruling confirmed that decisions on such issues should be up to Congress, not federal agencies.

The 24 state officials asserted that the ruling demonstrates that the SEC does not have the power to impose federal climate change regulations. They urged the commission “to save everyone years of strife by abandoning the proposed rule.”

Financial professionals operate in a highly regulated industry that is overseen by the SEC, state regulators and other self-regulatory organizations such as FINRA and various exchanges. The attorneys at Lewitas Hyman understand this because we were formally senior attorneys in the SEC’s Division of Enforcement. We have represented clients in regulatory matters while working at Morgan Stanley and in private practice at some of the world’s largest law firms. If you are the subject of a regulatory proceeding, contact Lewitas Hyman at (888) 655 6002 or through our online contact form for a free consultation.