SEC Renews Lawyer Violation Reporting Mandate
Published Date: 2/27/2025
Notice
Summary
The SEC is asking to keep a rule that requires lawyers working with companies to report serious rule-breaking they find. This helps keep companies honest and protects investors. No changes or new costs are planned, and the rule’s approval just needs to be renewed to keep things running smoothly.
Analyzed Economic Effects
2 provisions identified: 0 benefits, 1 costs, 1 mixed.
Attorney 'Up‑the‑Ladder' Reporting Rule Stays
The SEC is keeping the rule that lawyers who appear and practice before the Commission must report evidence of material violations within an issuer (the so‑called "up‑the‑ladder" requirement) and, in rare cases, the information may be sent to the Commission. This rule implements Section 307 of the Sarbanes‑Oxley Act and remains unchanged as the SEC requests reinstatement of OMB approval.
QLCC Paperwork Burden and Estimated Cost
Issuers that set up a Qualified Legal Compliance Committee (QLCC) must adopt written procedures for confidential receipt, retention, and consideration of reports. The SEC estimates about 11,484 issuers are subject to the rules, about 346 issuers (≈3%) have or will establish a QLCC, the paperwork averages 6 hours every 3 years (2 hours/year), total annual burden is estimated at 692 hours, and the SEC estimates an annual outside‑counsel cost of $242,200 assuming $700/hour for half the hours.
Your PRIA Score
Personalized for You
How does this regulation affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-12163 — The Trade-Through Rule and Locked and Crossed Markets Provisions of Regulation NMS
The SEC wants to scrap some old rules that stop stocks from being traded at worse prices and prevent confusing market quotes. This change affects stock traders and exchanges, aiming to simplify trading and possibly speed things up. If you want to share your thoughts, you’ve got until August 17, 2026, so don’t miss out!
2026-10373 — Registered Offering Reform
The SEC wants to make it easier and cheaper for more companies to sell their stocks and bonds to the public. They’re opening up special forms and benefits to more businesses, updating rules to be more modern, and cutting red tape by overriding some state rules. If you’re a company planning to raise money, these changes could speed things up and save you money, with feedback due by July 27, 2026.
2026-10222 — Enhancement of Emerging Growth Company Accommodations and Simplification of Filer Status for Reporting Companies
The SEC is making it easier for companies that report their finances by simplifying their categories into just two groups: big and small filers. Smaller companies, including emerging growth ones, will get more time to file reports and enjoy simpler rules, while big companies keep stricter standards. These changes aim to save time and money, with feedback open until July 20, 2026.
2026-07651 — Concept Release on Consolidated Audit Trail and Other Audit Trails and Data Sources
The SEC wants your thoughts on how it tracks stock market trades using the Consolidated Audit Trail and other data tools. They’re thinking about updating rules to keep up with new tech, privacy, and security needs, and to make sure the system is fair and cost-effective. If you’re involved in the stock market or data tracking, speak up by June 22, 2026!
2026-12252 — Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX Pearl Options Exchange Fee Schedule To Establish Fees for the Trade-by-Trade Report
MIAX Pearl Options Exchange is adding new fees for their Trade-by-Trade Report starting now. Traders and firms who want this detailed report will pay a monthly subscription or a fee for one-time historical data requests, with discounts if they also buy related reports. This change helps the Exchange cover costs and keeps data access clear and fair.
2026-12260 — Self-Regulatory Organizations; Long-Term Stock Exchange, Inc.; Notice of Filing of a Proposed Rule Change To Amend its Rules Related to Market Makers
The Long-Term Stock Exchange (LTSE) wants to update its rules for Market Makers—those who help keep trading smooth and steady. They’re adding clear definitions, setting up a new registration system, and creating fresh responsibilities for Market Makers and their traders. These changes aim to make trading fairer and more organized, with no big cost changes expected, and they’re open for public comments now.
Previous / Next Documents
Previous: 2025-03134 — Proposed Action in Section 301 Investigation of China's Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance
The U.S. government is looking into China's moves to control shipping, logistics, and shipbuilding industries. They want your thoughts before deciding on trade actions that could affect businesses and prices. Get ready to share your views soon, as public hearings and comment deadlines are coming up!
Next: 2025-03136 — Information Collections Being Reviewed by the Federal Communications Commission Under Delegated Authority
The FCC is checking in with the public to make sure its paperwork requests are really needed and easy to handle. They want to cut down on hassle, especially for small businesses with fewer than 25 employees, and are asking for ideas to make things clearer and simpler. If you have thoughts, now’s the time to share before they finalize these info collections—no surprises or extra costs expected!