SEC Commissioner Mark T. Uyeda expressed concern about overwhelming the agency's regulated entities with several upcoming compliance deadlines, as the SEC continues to plow forward with its rule-making.
When it comes to determining rules' implementation dates, "at least in my opinion, we can't have these hit all at the same time," Mr. Uyeda said at the Investment Adviser Association's Investment Adviser Compliance Conference on Monday.
The SEC is keeping busy this year — its 2023 regulatory agenda, released in January, listed 29 items in the final rule-making stage and 23 items in the proposed rule-making stage.
In February, the SEC finalized a rule that will shorten the U.S. securities settlement cycle, accelerating the cycle to T+1 — settling a trade one business day after it is executed — from T+2, or two business days. The final rule pushed the compliance date to May 28, 2024, from the original date of March 31, 2024, which was included in the rule proposal. However, several industry groups and stakeholders requested in their comment letters that the implementation date be pushed even further to Sept. 3, 2024.
Mr. Uyeda said he was in support of shortening the cycle to T+1 but voted against the rule because of the May 2024 compliance date.
"In my view, we are in an imprudent rush away from a sensible transition date and, for that reason, I am unable to support the final rule," Mr. Uyeda said at the SEC meeting Feb. 15.
Similarly, Mr. Uyeda voted against a rule, adopted in November, that requires enhanced disclosure of proxy voting, including for executive compensation matters.
At the SEC's Nov. 2 meeting, Mr. Uyeda expressed "disappointment about the lack of a detailed comment summary" for the rule, criticizing what he called an "apparent rush to approve this rule-making." That rule will take effect July 1, 2024.
Mr. Uyeda noted the upcoming compliance dates for the T+1 rule and proxy voting rule, pointing out there are a slew of other rules that may be finalized soon.
"Some of these deadlines and compliance dates, in my mind, just don't make sense for everyone, everywhere, all at the same time," he said, making a nod to the film "Everything Everywhere All at Once," which won the Oscar for best picture Sunday night.
