Cybersecurity Policy Report, SEC withdraws 14 proposals from 2022 and 2023, (Jun 13, 2025)

Organizations Mentioned:Municipal Securities Rulemaking Board

Over a dozen Gensler-era proposals are tossed out, including Regulation Best Execution and expansions to Regulations ATS and SCI.

The SEC has formally withdrawn fourteen proposed rules issued between March 2022 and November 2023. According to the Comm ...

By Rodney F. Tonkovic, J.D.

Over a dozen Gensler-era proposals are tossed out, including Regulation Best Execution and expansions to Regulations ATS and SCI.

The SEC has formally withdrawn fourteen proposed rules issued between March 2022 and November 2023. According to the Commission's statement, it will not issue final rules for these proposals and if it decides to pursue future actions on these subjects, new proposed rules will be issued (Withdrawal of Proposed Regulatory Actions, Securities Act Release No. 11377, Exchange Act Release No. 103247, Investment Advisers Act Release No. 6885, Investment Company Act Release No. 35635 (Jun. 12, 2025)).

The withdrawn proposals are:

Substantial Implementation, Duplication, and Resubmission of Shareholder Proposals Under Exchange Act Rule 14a-8 (34-95267): Proposed in July, 2022, the rule would have updated the substantive bases for the exclusion of shareholder proposals with respect to substantial implementation, duplication, and resubmission. Staff Legal Bulletin No. 14M, issued in February 2025 specifically noted that this release had not yet been adopted and was not operative.
Conflicts of Interest Associated with the Use of Predictive Data Analytics by Broker-Dealers and Investment Advisers (34-97990): Proposed in July 2023, this release was intended to address possible conflicts of interest arising from the use of new predictive data analytics technologies that could place a firm's interests over those of the investors.
Safeguarding Advisory Client Assets (IA-6240, comment period reopened in IA-6384): This February 2023 proposal would address how investment advisers safeguard client assets. The rule would renumber the current safeguarding rule and amend certain of its provisions to, among other changes, protect a broader array of client assets and advisory and require the use of a qualified custodian.
Cybersecurity Risk Management for Investment Advisers, Registered Investment Companies, and Business Development Companies (33-11028, comment period reopened in 33-11167): Proposed in February 2022, new rules and forms would require that registered investment advisers and investment companies adopt and implement written cybersecurity policies and procedures addressing cybersecurity risks.
Enhanced Disclosures by Certain Investment Advisers and Investment Companies About Environmental, Social, and Governance Investment Practices (33-11068, comment period re-opened in 33-11117). The proposal would amend rules and forms to enhance disclosures by certain investment advisers and investment companies about ESG investment practices. Different disclosures would be required depending on the ESG strategies pursued. Proposed in May 2022.
Outsourcing by Investment Advisers (IA-6176): Amendments proposed in October 2022 would prohibit registered investment advisers from outsourcing certain services or functions without first meeting minimum requirements and would require collection of information about the service providers defined in the proposed rule.
Prohibition Against Fraud, Manipulation, and Deception in Connection With Security-Based Swaps; Prohibition against Undue Influence over Chief Compliance Officers (34-97656, 34-93784, comment period re-opened in 34-97762) The Commission has formally withdrawn proposed rule 10B-1concerning position reporting of large security-based swap positions. Rule 10B-1 was proposed in December 2021 in a release containing additional rules that were adopted in June 2023. The final rule release noted that the Commission had yet to finalize the new proposed rule because comments were still coming in, and the comment period was extended in a subsequent release.
Volume-Based Exchange Transaction Pricing for NMS Stocks (34-98766): The proposal would require exchanges to disclose the number of members that qualify for different pricing tiers and prohibit volume-based pricing for agency-related order flow. Proposed in October 2023).
Regulation Best Execution (34-96496): The proposal, issued in December 2022, would require broker-dealers to establish detailed policies and procedures to ensure that they seek best execution when trading equities, fixed income, options, crypto tokens, or other securities.
Order Competition Rule (34-96495): proposed Rule 615 to Regulation NMS would require certain orders placed by individual investors be exposed to competition in open auctions before being executed internally by trading centers that restrict order-by-order competition. Proposed in December 2022.
Regulation Systems Compliance and Integrity (34-97143): this proposal would update and expand the scope of entities subject to Regulation SCI. Proposed in March 2023.
Cybersecurity Risk Management Rule for Broker-Dealers, Clearing Agencies, Major Security-Based Swap Participants, the Municipal Securities Rulemaking Board, National Securities Associations, National Securities Exchanges, Security-Based Swap Data Repositories, Security-Based Swap Dealers, and Transfer Agents (34-97142): Dating from March 2023, proposed new Rule 10, new Form SCIR and other amendments would require all securities market entities to establish, maintain and enforce written policies and procedures to address cybersecurity risks, and to assess the effectiveness of those policies and procedures at least annually.
Supplemental Information and Reopening of Comment Period for Amendments to Exchange Act Rule 3b-16 Regarding the Definition of “Exchange” (34-94062, comment period reopened in 34-94868 and 34-97309). Proposed amendments to Exchange Act Rule 3b-16 would expand Regulation ATS to cover alternative trading systems that trade government securities, NMS stock, and other securities Proposed in January 2022.
Proposed Amendments to the National Market System Plan Governing the Consolidated Audit Trail To Enhance Data Security (34-89632). Proposed in October 2020, these amendments to the Consolidated Audit Trail would limit the scope of sensitive information required to be collected, as well as to enhance the security of the CAT and the protections afforded to CAT data.

It is worth noting that several of the withdrawn releases were targeted by House Financial Services Committee Republicans in a call to withdraw several final rules as well as eight proposals. The letter, which was signed by no Democrats, indicated that the rules and proposals were misguided, and imposed undue burdens.

The release is No. 33-11377.

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Cybersecurity Policy Report, SEC withdraws 14 proposals from 2022 and 2023, (Jun 13, 2025)

Organizations Mentioned:Municipal Securities Rulemaking Board

By Rodney F. Tonkovic, J.D.

Over a dozen Gensler-era proposals are tossed out, including Regulation Best Execution and expansions to Regulations ATS and SCI.

The SEC has formally withdrawn fourteen proposed rules issued between March 2022 and November 2023. According to the Comm ...

By Rodney F. Tonkovic, J.D.

Over a dozen Gensler-era proposals are tossed out, including Regulation Best Execution and expansions to Regulations ATS and SCI.

The withdrawn proposals are:

Substantial Implementation, Duplication, and Resubmission of Shareholder Proposals Under Exchange Act Rule 14a-8 (34-95267): Proposed in July, 2022, the rule would have updated the substantive bases for the exclusion of shareholder proposals with respect to substantial implementation, duplication, and resubmission. Staff Legal Bulletin No. 14M, issued in February 2025 specifically noted that this release had not yet been adopted and was not operative.
Conflicts of Interest Associated with the Use of Predictive Data Analytics by Broker-Dealers and Investment Advisers (34-97990): Proposed in July 2023, this release was intended to address possible conflicts of interest arising from the use of new predictive data analytics technologies that could place a firm's interests over those of the investors.
Safeguarding Advisory Client Assets (IA-6240, comment period reopened in IA-6384): This February 2023 proposal would address how investment advisers safeguard client assets. The rule would renumber the current safeguarding rule and amend certain of its provisions to, among other changes, protect a broader array of client assets and advisory and require the use of a qualified custodian.
Cybersecurity Risk Management for Investment Advisers, Registered Investment Companies, and Business Development Companies (33-11028, comment period reopened in 33-11167): Proposed in February 2022, new rules and forms would require that registered investment advisers and investment companies adopt and implement written cybersecurity policies and procedures addressing cybersecurity risks.
Enhanced Disclosures by Certain Investment Advisers and Investment Companies About Environmental, Social, and Governance Investment Practices (33-11068, comment period re-opened in 33-11117). The proposal would amend rules and forms to enhance disclosures by certain investment advisers and investment companies about ESG investment practices. Different disclosures would be required depending on the ESG strategies pursued. Proposed in May 2022.
Outsourcing by Investment Advisers (IA-6176): Amendments proposed in October 2022 would prohibit registered investment advisers from outsourcing certain services or functions without first meeting minimum requirements and would require collection of information about the service providers defined in the proposed rule.
Prohibition Against Fraud, Manipulation, and Deception in Connection With Security-Based Swaps; Prohibition against Undue Influence over Chief Compliance Officers (34-97656, 34-93784, comment period re-opened in 34-97762) The Commission has formally withdrawn proposed rule 10B-1concerning position reporting of large security-based swap positions. Rule 10B-1 was proposed in December 2021 in a release containing additional rules that were adopted in June 2023. The final rule release noted that the Commission had yet to finalize the new proposed rule because comments were still coming in, and the comment period was extended in a subsequent release.
Volume-Based Exchange Transaction Pricing for NMS Stocks (34-98766): The proposal would require exchanges to disclose the number of members that qualify for different pricing tiers and prohibit volume-based pricing for agency-related order flow. Proposed in October 2023).
Regulation Best Execution (34-96496): The proposal, issued in December 2022, would require broker-dealers to establish detailed policies and procedures to ensure that they seek best execution when trading equities, fixed income, options, crypto tokens, or other securities.
Order Competition Rule (34-96495): proposed Rule 615 to Regulation NMS would require certain orders placed by individual investors be exposed to competition in open auctions before being executed internally by trading centers that restrict order-by-order competition. Proposed in December 2022.
Regulation Systems Compliance and Integrity (34-97143): this proposal would update and expand the scope of entities subject to Regulation SCI. Proposed in March 2023.
Cybersecurity Risk Management Rule for Broker-Dealers, Clearing Agencies, Major Security-Based Swap Participants, the Municipal Securities Rulemaking Board, National Securities Associations, National Securities Exchanges, Security-Based Swap Data Repositories, Security-Based Swap Dealers, and Transfer Agents (34-97142): Dating from March 2023, proposed new Rule 10, new Form SCIR and other amendments would require all securities market entities to establish, maintain and enforce written policies and procedures to address cybersecurity risks, and to assess the effectiveness of those policies and procedures at least annually.
Supplemental Information and Reopening of Comment Period for Amendments to Exchange Act Rule 3b-16 Regarding the Definition of “Exchange” (34-94062, comment period reopened in 34-94868 and 34-97309). Proposed amendments to Exchange Act Rule 3b-16 would expand Regulation ATS to cover alternative trading systems that trade government securities, NMS stock, and other securities Proposed in January 2022.
Proposed Amendments to the National Market System Plan Governing the Consolidated Audit Trail To Enhance Data Security (34-89632). Proposed in October 2020, these amendments to the Consolidated Audit Trail would limit the scope of sensitive information required to be collected, as well as to enhance the security of the CAT and the protections afforded to CAT data.

The release is No. 33-11377.