Amy Lynch calls out SEC for pulling rule proposals (ThinkAdvisor)

FrontLine Compliance’s Founder and President describes the SEC’s recent withdrawal of 14 rule proposals as an “indiscriminate approach” by a regulator. In the lead comments, Amy Lynch states that the bulk recision by the SEC has the look of a regulator showing no effort to evaluate each proposal on its merits, but rather taking a red pen to just about any rule proposed by the prior administration. While certain controversial rule proposals were removed, such as those on outsourcing and custody rule changes, others that seemed acceptable to the industry were also rescinded. For instance, there was little pushback when the proposed cybersecurity rule for advisers and investment companies was issued, but it was withdrawn anyway along with many others, explains Ms. Lynch. The SEC did state it could propose new rules in the areas covered by rule proposals that were withdrawn, but for now, there seems to be little incentive for rulemaking by this SEC. See ThinkAdvisor, “SEC Shreds Plans for 14 Major Rules”