SEC news. Draft of the strategic plan for 2022-2026

The SEC controls a capital of more than $100 trillion, equivalent to 38% of the global capital market. Despite its leadership position, the regulator continues to evolve simultaneously with the modernization of technology and industries.

“We can support the community by continuing to invest in our talented employees and updating our agency’s rules and approaches. Through the goals we’ve laid out in this Strategic Plan, we will continue to bring a skilled and steady hand to the capital markets of a changing world,” said Gary Gensler, Chairman of the SEC.

The Commission has three primary goals for the near future:

The basic principles that the regulator plans to guide its work remain the same. These include:
provision of complete and reliable information by issuers to investors; 

Let’s take a closer look at the initiatives the strategic plan envisions to implement each goal.

How can market participants be protected? The only way is to eliminate fraud, manipulation, and other misconduct completely. To do this, the SEC plans to: 

 Regulatory officials believe, “All financial activities should be subject to consistent and effective regulation and enforcement, regardless of organization, technology or business model.”

Meanwhile, the SEC continues to raise the high-profile issue of better information disclosure to investors. This is especially relevant for the virtual currency market, a point that Gensler never tires of repeating in his communications amid the crypto winter.

Strategically, the regulator declares to transform the disclosure structure and simplify access to data. With these changes, investors will be able to get all the information they need to analyze and make decisions based on clear facts.

“Trillions of dollars of capital flow through the markets daily – amounts that would be unimaginable just a few decades ago. This development creates regulatory and supervisory challenges as the activities of large investment firms extend far beyond U.S. borders, and new players in the U.S. markets seek to avoid or evade U.S. securities laws,” the SEC says.

To combat violations, the regulator suggests updating existing rules and approaches according to developments in technology and markets, examining strategies to address systemic and infrastructure risks, and adapting the Commission’s work to current trends and important market events.

The SEC will pay particular attention to the cryptocurrency, derivatives, and fixed income markets. By dedicating more resources to supervising these segments, the regulator will be able to organize a flexible approach to work and respond quickly to changes in market conditions.

The most important asset for the SEC is the people who work at the Commission. The organization seeks to build a team of talented and motivated professionals who can successfully implement the strategic plan’s goals.

Besides improving its recruitment program, the Commission plans to rotate between offices more frequently, implement remote working, and strengthen internal controls. According to management, the SEC must become a cost-effective, safe, and resilient organization to perform its functions flawlessly.

The SEC’s strategic plan is formed on the basis of information from various market participants. These include investors, members of Congress and its committees, entrepreneurs, academics, and analysts.

The Commission wants to get additional feedback to create the clearest possible development plan for fiscal years 2022-2026 and initiates a public debate on the published document.