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House subcommittee approves bill to block several SEC rule proposals

On Behalf of | Jul 3, 2023 | Regulatory Investigations

A House of Representatives subcommittee approved a bill that would eliminate funding for several pending Securities and Exchange Commission rules, InvestmentNews reports.

The measure, the Financial Services and General Government Appropriations bill, was released by the House Appropriations Committee. It provides $2 billion for the SEC’s operating expenses in fiscal 2024, a $170 million reduction from the current budget.

The bill also prohibits the SEC from allocating money to finalize, implement or enforce certain proposed rules that include Safeguarding Advisory Clients, the new custody rule. The SEC planned to expand the application of the custody rule beyond client funds and securities to include any client assets in an advisor’s possession or when an advisor has the authority to obtain possession of client assets.

The House spending measure would also bar the SEC from using funds for other regulations, including the environmental, social and governance rule which would mandate disclosures from public companies on greenhouse gas emissions, and the proposed Regulation Best Interest, which would establish a best execution standard for brokers, dealers, government securities brokers, government securities dealers, and municipal securities dealers and require them to establish policies to comply with the standard.

The bill was passed last week by the Financial Services and General Goverment Subcommittee and now goes to the full committee.

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