H.R. 9329: SEC Reform and Restructuring Act

This bill would make several changes to how the Securities and Exchange Commission (SEC) writes and enforces rules, and it would also change how some related oversight functions are handled.

SEC rulemaking and review requirements

The bill would require the SEC to do more formal analysis before issuing regulations. In particular, the agency would have to evaluate the costs, benefits, and cumulative effects of proposed rules. It would also have to consider how a new rule interacts with existing requirements, rather than looking at each rule in isolation.

The bill would also set minimum public comment periods for SEC proposals, giving the public more time to review and respond to new rules.

Congressional oversight and reporting

The SEC would be required to testify before Congress on a regular basis. This would increase direct oversight of the agency’s activities and give lawmakers more frequent opportunities to question SEC officials about policy, enforcement, and rulemaking.

GAO reviews and cybersecurity oversight

The bill would direct the Government Accountability Office (GAO) to conduct reviews of SEC cybersecurity practices and reviews of major SEC rules. These reviews would be intended to assess the agency’s handling of information security and the effects of significant regulations.

Penalty changes for multiple violations

The bill would change how certain enforcement penalties are calculated. If several acts of noncompliance arise from the same cause, the same misstatement or omission, or an ongoing failure, they would be treated as one violation rather than multiple separate violations, across securities laws. This could limit the number of penalties assessed in some enforcement cases where the conduct is connected or repeated over time.

SEC structure and organization

The bill would require the SEC to reorganize some of its internal operations and could lead to consolidation of regional offices. It would also absorb and restructure the Public Company Accounting Oversight Board (PCAOB) into the SEC, bringing audit oversight functions more directly under the commission.

Relevant Companies

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