Atkins notes a D.C. Circuit court vacated SEC's 75% independent director and independent chair requirement over 20 years ago.
“More than 20 years ago, the U.S. Court of Appeals for the District of Columbia Circuit vacated a rulemaking that would have mandated a board with no less than 75% independent directors and an independent chair as a condition to reliance on certain exemptive rules.”
Atkins says the Commission must move quickly to restructure the CAT to address cost, governance, and funding issues.
“I believe that it is critical for the Commission to move quickly and lay the groundwork necessary to restructure the CAT to address persistent cost, governance, and funding issues.”
Atkins reports commenters want the SEC to take more responsibility for managing and funding the CAT.
“One theme emerges from the comment file: investors and market participants want the Commission to take more responsibility for managing and funding this project.”
Atkins says aligning regulations with the court's vacatur reaffirms commitment to sound regulatory principles.
“which bring our regulations into alignment with the Federal court’s vacatur of both the 75% requirement and the independent chair requirement. These amendments are a necessary step to reaffirm our commitment to sound regulatory principles.”