General Summary of the Bill

The bill, known as the "SEC Regulatory Evaluation, Verification, and Integrity of Effective Workflows Act of 2024" or the "SEC REVIEW Act of 2024," aims to amend the Securities Exchange Act of 1934. The central focus of the bill is to establish a framework for reviewable actions taken by the Securities and Exchange Commission (SEC) when executive functions are delegated within the organization. It outlines procedures that require such actions to be authorized by either the Chairman alone or in agreement with Commissioners, even when meetings are not convened. Additionally, the bill introduces requirements for annual reports that analyze SEC decisions, particularly how they impact investor protection, market fairness, capital formation, and avoid bias. It also mandates reports from the General Counsel concerning delegated functions following changes in leadership or vacancies at the SEC.

Summary of Significant Issues

There are several significant issues pointed out in the bill. One issue is that the term "reviewable action" lacks precise definition, which could lead to inconsistent application. The bill also describes a process for approval that might lack transparency since agreements may be reached without formal meetings. Moreover, the bill discourages detailed reporting that might include interpretations, which could limit the transparency and comprehensiveness of reports. Additionally, there’s no outlined penalty for the General Counsel's non-compliance in reporting, which could undermine accountability. Finally, the title of the act might be seen as insufficiently descriptive of its intent, potentially causing confusion.

Impact on the Public Broadly

The potential impact of this bill on the public is related to its modifications to SEC processes, which could affect the regulation of securities markets. By altering how the SEC manages delegated actions and requiring specific annual reports, there could be either positive impacts through increased oversight or negative ones if these processes prove opaque. Transparency and clarity in rule enforcement and communications from the SEC is important for maintaining trust and confidence in the financial markets, which can influence the broader economy and individual investments.

Impact on Specific Stakeholders

For investors, this bill might offer reassurance by aiming to ensure fair and orderly markets through increased scrutiny of SEC actions. Meanwhile, market participants like financial institutions might experience either benefit or burden depending on how the reporting and approval processes are implemented. If these new measures enhance transparency and predictability, they could lead to a more stable regulatory environment. Conversely, if they produce excessive bureaucratic hurdles, the cost and complexity of compliance could increase.

For the SEC itself, this bill would enforce more stringent reporting and validation requirements, potentially increasing workload but also strengthening its governance integrity and accountability. The leadership within the SEC would have to adjust to new procedural requirements, ensuring that decisions are carefully vetted and reported.

Overall, while the intent of the bill emphasizes improved oversight and accountability, its impact will largely depend on the execution and clarity of the processes it establishes.