SEC Renews Rule to Vet Wall Street's Troublemakers
Published Date: 5/12/2025
Notice
Summary
The SEC is asking to keep using Rule 19h-1, which helps them check if people with serious past misconduct can join or stay in the securities business. This mainly affects one big self-regulatory group that files about 40 detailed reports a year, each taking around 80 hours to prepare. No big changes or costs are expected, just a smooth extension to keep investor protection strong.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Large Filing Burden for One SRO
The SEC estimates that one self-regulatory organization will make multiple filings under Rule 19h-1 each year: 38 submissions under 19h-1(a) at about 80 hours each, 2 submissions under 19h-1(a)(4) at about 80 hours each, 40 submissions under 19h-1(b) at about 13 hours each, and 3 submissions under 19h-1(d) at about 80 hours each. The aggregate estimated annual burden for that respondent is approximately 3,960 hours.
SEC Keeps Rule 19h-1 in Place
The SEC asked OMB to extend its approval to keep using Rule 19h-1 so the agency can continue reviewing self-regulatory organizations' decisions about letting people with statutory disqualifications enter or stay in the securities business. The filings can also include applications for consent to associate even if a Commission order otherwise bars the association.
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