Regulatory Alerts2022-08-08
Clearing Agency Governance and Conflicts of Interest Proposed Rule
The Securities and Exchange Commission is proposing a consolidated Rule 17Ad-25 to enhance the governance of registered clearing agencies by reducing board conflicts of interest and clarifying director responsibilities. The rule mandates independent board representation, establishes specific composition and oversight standards for nominating and risk management committees, and requires documented policies to identify, mitigate, and report conflicts. Concurrently, the Commission withdraws older proposed governance rules to replace them with these precise requirements that better align the incentives of clearing agency owners, participants, and stakeholders.
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