In October of this yuear, Judges for the US Fifth Circuit Court of Appeals had reportedly provided the US Securities and Exchange Commission (SEC) a 30-day period ion order to “correct defects in the rule,” while noting that the agency had violated the Administrative Procedure Act by not responding to the Chamber’s statements – which were issued during the rule-making process and also “failed to conduct a proper cost-benefit analysis.”
As reported by Reuters, the SEC didn’t meet that established deadline after a request made for an extension had been denied by the court this past month.
Circuit Judge Jerry Smith, who is notably a Ronald Reagan appointee, said:
“The SEC claims to have ‘worked diligently to ascertain the steps necessary to comply with the Court’s remand order.’ Yet the agency has nothing to show for its efforts. It returns to this court empty-handed … The rule remains no less flawed – and no less unlawful – than it was on October 31, 2023.”
An SEC representative stated that although the agency has been “disappointed in the Court’s ruling, it’s important to note that the court rejected petitioners’ First Amendment challenge to the rule and petitioners’ challenge to the rule’s comment period.”
The SEC rep added:
“In terms of next steps related to share repurchase disclosures, any staff recommendation will be presented to the commission.”
Patrick McHenry, the U.S. House Committee on Financial Services Republicans – Chairman stated:
“Today, Chair Gensler’s SEC reaped the consequences of its inadequate economic analysis and rulemaking beyond its authority. The court affirmed exactly what House Republicans have been saying about the SEC’s reckless agenda and threw out the Commission’s stock buyback rule.”
