Published on Aug 29th, 2022 |

Brief Introduction to the Strategic Plan

On August 24th, the SEC released a draft of their strategic plan for fiscal years 2022 to 2026 with a focus on the evolving technology and business models that are changing.

SEC’s Three Primary Goals

The SEC’s drafted strategic plan has three goals to establish below:

Protecting Investors

Protection against manipulation, fraud, and misconduct for working families (Sticking to their goal on protecting investors).

    • Continue to focus on uncovering key risks and violations that could impact individual investors during the SEC’s examination program which can range from cybersecurity to private fund adviser conflicts of interest.
    • In order for the SEC to improve its capabilities to manage and analyze data, they believe this can be achieved by broadening the use of machine learning and AI, expanding disclosure and analytical tools, and developing long-term risk analysis connected to policy development.
    • Focus on ease of access to public disclosures for investors to easily analyze.

Robust Regulatory Framwork

In order to keep pace with evolving technologies, business models, and markets, the SEC plans to develop and implement a robust regulatory framework.

    • A key focus by the SEC would be to enhance transparency in private markets and modify rules to ensure that core regulatory principles apply in all appropriate contexts.
    • A more agile approach to being more proactive and engaged on digitization initiatives and effectively collaborate with other regulators.
    • The SEC wants to continue expanding their expertise in crypto assets, fixed income, and derivatives.

Supporting Skilled Workforces

Supporting a skilled workforce that is fully equipped to advance agency objectives and is diverse, equitable, and inclusive.

    • The SEC will continue to promote diversity, equity, and inclusion within its workforce by focusing on recruiting, training, and retaining staff with the right mix of skills.
    • Data and information security will be one of the most important focus areas to optimize controls on systems and data based on risk.
    • The SEC is moving quickly to the cloud and will continue to invest in modernizing key enabling systems.

Vigilant’s Final Conclusion

The drafted Strategic Plan was developed to emphasize and strengthen the SEC’s mission to “protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.” This has been a continual trend throughout 2022 and it appears it will continue to be the case for future years to come.

As new Proposed and Effective Rules come into place more frequently, it can become difficult to follow and stay up to speed on them. If you are in need of Compliance assistance, please feel free contact Vigilant as we are happy to help address your Compliance needs.

Contact Us Today For Assistance

Looking to Submit Comments on the Drafted Strategic Plan by the SEC?

Click Here to Submit Comments