Last week, the House of Representatives approved the Securities and Exchange Commission’s (“SEC”) $1.7 billion budget for the agency’s fiscal year 2019. Next year’s spending budget is a modest improvement from the SEC’s 2018 version ($1.6 billion) and is part of a bigger bill that funds other agencies like the Department of Treasury, Internal Revenue Service, and Commodity Futures Trading Commission.
House Republican leaders tied the SEC’s budget to several deregulatory provisions. For instance, the SEC cannot force public companies to reveal their political spending or enforce a law that reformats the proxy cards in shareholder votes via a universal proxy. Another budget provision expands the “accredited investor” definition to include financial sophistication tests.
The SEC fiscal year 2019 budget goes into effect in October.