The much-anticipated 2022 SEC Agenda has yet to make its appearance. However, given recent announcements and rulings, it’s clear heightened regulations are just around the corner. And to help you prepare, we’ve gathered our top predictions for how we believe the next year will shape up.
Top Priorities for the SEC
At the start of the new year, we released our top 2022 compliance trends. And based on the SEC’s trajectory, it seems our trends almost perfectly line up with our predictions for the 2022 SEC agenda. Let’s dig in.
1. Cybersecurity
In case you missed it, the SEC just released a new proposed rule which, if passed, would “enhance cybersecurity preparedness and could improve investor confidence in the resiliency of advisers and funds against cybersecurity threats and attacks.” A decision which will most likely not surprise anyone, given the increase in cyber attacks over the last decade.
2. Cryptocurrency
Probably one of the few times a trending Twitter topic correlates with an SEC priority. With the surge in popularity, firms can expect the SEC to start implementing new rules and regulations around this digital currency…and beyond. While cryptocurrency may be one of the biggest talking points, the decentralized financial ecosystem at large represents a much broader challenge for compliance.
3. ESG
This would be the second year ESG appears on the agenda, a signal of how seriously the SEC is taking this potential risk factor. As the 2021 Acting Chair, Allison Herren Lee, put it in press release on last year’s agenda, “the Division is enhancing its focus on climate and ESG-related risks by examining proxy voting policies and practices to ensure voting aligns with investors’ best interests and expectations, as well as firms’ business continuity plans in light of intensifying physical risks associated with climate change.”
4. Shadow Trading
One of the biggest, and most controversial agenda items. Shadow trading has become the topic du jour, thanks in large part to a judge’s recent ruling that, “The U.S. Securities and Exchange Commission can pursue a first-of-its-kind insider trading case accusing a former pharmaceutical company executive of trading in a competitor’s stock ahead of a merge.”
While we await the formal release of the SEC 2022 agenda, it’s never too early to start preparing. How? Integrating an innovative technology designed to help automate and elevate your compliance program.
The ComplySci Platform offers unique features and capabilities to help you mitigate risk and create added strategic value for your firm. Schedule a demo today to find out how!