By John Filar Atwood
The Chair of the House Committee on Oversight and Responsibility is threatening to use subpoena powers to compel the SEC to produce information requested by the committee on the agency’s “efforts to advance a progressive European climate and social agenda on American companies.” Rep. James Comer (R-Ky.), in a letter to SEC Chair Gary Gensler, accused the SEC of obstructing Congressional oversight through delays and misdirection.
In June Rep. Comer and Senate Banking Committee Ranking Member Tim Scott (R-SC) asked the SEC to produce records and information related to its coordinated effort with European regulatory authorities to impose climate and social policies on American companies. The request extended to any transcribed interviews with SEC officials related to coordination with the EU on climate-related measures.
Rep. Comer and Sen. Scott are concerned that the SEC is participating in the EU’s development of social engineering initiatives disguised as disclosure and due diligence directives. They claim that it is not clear that the law provides the authority for such international cooperation, and want to determine whether legislation is needed “to ensure our government works for the American taxpayer and not on behalf of foreign interests.”
Rep. Comer said that in the four months since the request, the agency has not produced information that is substantively responsive, instead mostly providing documents that are available on the SEC’s website, publicly available comments to rulemaking, or documents that were already released under the Freedom of Information Act. He said the committee is not persuaded by the SEC’s repeated suggestion that Congress is unable to obtain non-public information without a vote of the full Commission authorizing the disclosure.
The ability of Congress to conduct oversight is inherent in its legislative powers and exists independently of any vote of the SEC, he said, and the SEC may not immunize itself from the exercise of that power.
Rep. Comer noted that the SEC’s entire regulatory regime is built on disclosure and transparency, and that it expects cooperation from public registrants. Even so, the agency is “delaying, misleading, and blocking access” to the records the committee has requested.
He said that if the Commission fails to produce the requested documents by October 19, he will consider using compulsory measures to gain compliance.