The SEC's newly-published annual list of rules to be reviewed pursuant to §610 of the Reg Flex Act is noteworthy - including these among numerous other rules slated for review in the next 12 months and open for public comment:
Note that although the list is triggered by a requirement that the SEC review its rules that have a significant economic impact upon a substantial number of "small entities" within 10 years of final rule publication "to determine whether such rules should be continued without change, or should be amended or rescinded," the list and related review aren't limited to rules that impact small entities. Rather, when the SEC implemented the Reg Flex Act in 1981 - consistent with its policy to review all final rules for continued utility - it intended that the Act-triggered review be broader than required to also include other rules. As such, as noted by former SEC Commissioner Piwowar in 2016, public comment is encouraged, and is in fact key to the merit of SEC's retrospective review process.
As recounted in the release, the Act sets forth these specific considerations that must be addressed in the review of each rule:
- Continued need for the rule
- Nature of complaints or comments received concerning the rule from the public
- Complexity of the rule
- Extent to which the rule overlaps, duplicates or conflicts with other federal rules and, to the extent feasible, with state and local governmental rules
- Length of time since the rule has been evaluated or the degree to which technology, economic conditions, or other factors have changed in the area affected by the rule
Comments are due December 27th - 30 days after publication in the Federal Register.
This post first appeared in the weekly Society Alert!