#SECGuidance

Navigating the Regulatory Landscape: Understanding Recent SEC Guidance

The Securities and Exchange Commission (SEC) plays a crucial role in maintaining fair and efficient markets through its guidance. In 2025, several key areas have seen updated or new guidance impacting businesses and investors alike.

A significant focus has been on shareholder proposals and engagement. Recent guidance clarifies the circumstances under which companies can exclude shareholder proposals, particularly those related to environmental, social, and governance (ESG) issues. This reflects a move towards emphasizing financial materiality in such proposals.

Another important area involves investment adviser marketing. Updated FAQs on the Marketing Rule provide clarity on displaying investment performance, including individual investments and portfolio characteristics, offering more flexibility while ensuring transparency for investors.

Furthermore, the SEC has provided new interpretations regarding beneficial ownership reporting on Schedule 13G. This guidance clarifies when shareholder engagement with a company's management could lead to a shareholder being deemed to have the purpose of influencing control, thus affecting their eligibility to use the short-form Schedule 13G.

These updates underscore the SEC's commitment to adapting its regulations to evolving market dynamics and ensuring investor protection. Businesses and investors must stay informed about these changes to navigate the regulatory landscape effectively and maintain compliance. Understanding and implementing SEC guidance is paramount for fostering trust and integrity within the financial markets.