The Securities and Exchange Commission (SEC) is expected to make dramatic improvements to the regulation of environmental, social, and government reports due to new initiatives. However, the new system is already fit for purpose, according to SEC Commissioner Hester Peirce.
Peirce cautioned against the department taking a more prescriptive approach in an interview with Law360, claiming that the new principles-based process was already capable of dealing with these issues.
When it comes to whether a new transparency system should be implemented, Peirce believes securities regulations are not the best mechanism for enacting policy priorities. A greater emphasis should be on ensuring that more people have access to capital markets.
When asked about new SEC Chairman Gary Gensler’s thoughts on the issue, Peirce said it was too early to speculate on his likely preferred route.
Commissioner Peirce’s remarks, on the other hand, point to the need for a greater focus on capital access, particularly as the US economy continues to recover from the COVID-19 pandemic.