Use SEC general exemptive authority far more often for smaller issuers
Mandate criticizes rare use of SEC’s broad general exemptive authority and says the Commission should use it significantly more often to cut burdens on issuers, especially smaller entrepreneurs.
Mandate
Mandate Ch. 27 (Financial Regulatory Agencies) — SEC: Congress has given the SEC broad general exemptive authority, but the SEC has used this authority only rarely; it should use this authority significantly more often to reduce the regulatory burden on issuers, particularly smaller entrepreneurs.
Undo plan
1) Require public notice, investor-protection findings, and sunset clauses before major exemptive relief.
2) Bar use of exemptive authority to waive core antifraud, auditor, or Exchange Act reporting duties for widely held issuers.
3) Publish annual exemptive-relief inventory with retail-investor impact analysis.
4) Prefer notice-and-comment rulemaking over one-off exemptions for structural market changes.
5) Verify: DERA cost/benefit memos attached to exemptions.