On June 12, 2025, the Securities and Exchange Commission (SEC) formally withdrew 14 rule proposals issued during former Chairman Gary Gensler’s tenure and indicated that any future action with respect to the subject areas of the rule proposals would require the issuance of new rule proposals. The withdrawn proposals included, among others, the following topics:
- Exclusion of public company shareholder proposals: This proposal would have amended the substantial implementation, duplication, and resubmission bases used by public companies to exclude shareholder proposals from proxy statements under Rule 14a-8 of the Securities Exchange Act of 1934.
- Cybersecurity risk management: This proposal would have required registered investment advisers and investment companies to adopt and implement written cybersecurity policies and procedures and confidentially report information to the SEC about certain cybersecurity incidents.
- Enhanced environmental, social and governance (ESG) disclosures: This proposal would have required registered investment advisers and registered investment companies to provide additional information regarding their ESG investment practices.
- Regulation Best Execution: This proposal would have required broker-dealers to establish, maintain and enforce written policies and procedures reasonably designed to comply with the best execution standard.
- Safeguarding advisory client assets: This proposed rule would have overhauled the custody rule under the Investment Advisers Act of 1940, including the expansion of asset coverage and requirements.
- Outsourcing by investment advisers: This proposed rule would have imposed monitoring and due diligence obligations on certain third-party service providers.
