SEC Will Require Just One Vote for Decisions as Trump Exerts More Control Over Agencies

Securities Enforcement Defense attorney Allison Kernisky was quoted in a Barron's article about the U.S. Securities and Exchange Commission's (SEC) revised quorum rule, which permits a single commissioner to take action when recusals or other disqualifications leave only one member available to consider a matter. The change allows the SEC to continue making regulatory, enforcement and policy decisions despite its reduced membership – down to two commissioners after the retirement of Hester Peirce. Allison told Barron's the current makeup may increase the agency's speed and predictability, but it loses the bipartisan deliberation Congress envisioned in creating the five-commissioner structure and limiting how many members could come from a single party. She added that public companies, securities and regulated funds should not expect a change anytime soon.

"The administration does not appear to be in a hurry to fill any of the empty seats, so it could be this way for a while," she said.

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