Managed Funds Association offers four recommendations for new SEC chair

By Dave Kovaleski  |   January 22, 2025   |   Federal

The Managed Funds Association (MFA) recommended four policies for the new acting chairman of the Securities and Exchange Commission (SEC).

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In a letter to acting SEC Chair Mark Uyeda, MFA suggested four initial policies to enact. They include:

  1. Withdraw the SECʻs appeal of the Dealer Rule. Last year the U.S. District Court vacated the illegal Dealer Rule, affirming MFA’s position that alternative asset managers are not dealers, and the Commission exceeded its statutory authority.
  2. Extend compliance deadline for Short Position Reporting Rule by six months to give market participants the time and guidance needed to build and test short sale reporting systems. The SEC did not provide adequate time for market participants to finalize and test short position reporting systems. The commission also has not issued staff FAQs or provided interpretive guidance on inconsistencies in the adopting release.
  3. Delay compliance date for New Form PF requirements to September 12, 2025—a six-month delay. The current implementation timeline will not enhance SEC oversight since the commission will receive a mix of old Form PF and New Form PF data. Additionally, the technical specifications for the New Form PF have not been finalized, which means that market participants do not have adequate time to establish reporting systems.
  4. Halt regulation by enforcement. The previous SEC leadership’s approach to enforcement circumvents the Administrative Procedure Act, violates market participants’ right to due process, and imposes significant costs and burdens on investors, markets, and the economy.

“MFA stands ready to work with the Trump Administration to advance policies that support U.S. economic growth and the financial well-being of all Americans,” Bryan Corbett, MFA president and CEO, said. “Acting SEC Chair Uyeda can turn the page and take quick, tangible, and achievable actions on Day One that enable the SEC to revisit policies that harm markets, investors, and the economy. These recommendations will help the SEC ensure the U.S. capital markets remain the strongest in the world.”