Global Trustee and Fiduciary Services Bite-Sized Issue 11 2025

18 QUICK LINKS AIFMD CBDC CRYPTOASSETS DIGITAL ASSETS FINTECH FSB MIFID/MIFIR (UK) IFR/IFD OPERATIONAL RESILIENCE OUTSOURCING SUSTAINABLE FINANCE/ESG T+1 TOKENISATION ASIA PACIFIC EUROPE NETHERLANDS NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 11 | 2025 NORTH AMERICA Chairman Atkins Signals Support for State-Led Corporate Governance Reforms On 9 October 2025, during a keynote address at the Weinberg Center for Corporate Governance, Securities and Exchange Commission (SEC) Chairman Paul Atkins detailed his views on corporate governance, focusing on the role of state law in managing shareholder proposals. He expressed strong support for companies using certain state law provisions that allow exclusion of proposals that are not a “proper subject” for shareholder action to exclude non-binding, or “precatory,” shareholder resolutions from proxy statements. He suggested this could be a valid path for companies, particularly those incorporated in Delaware, to manage the increasing number of proposals on social and political topics. Link to Keynote Address here Chairman Atkins Announces Reforms to the SEC’s Enforcement Process In a keynote address on 7 October 2025, at the A.A. Sommer, Jr. Lecture at Fordham Law School, SEC Chairman Paul Atkins outlined significant reforms to the SEC’s enforcement process. He announced specific changes to the Wells process, the stage where the SEC staff informs a potential defendant of forthcoming charges. Chairman Atkins stated that the reforms are designed to enhance fairness and transparency, including by providing defense counsel a guaranteed meeting with senior enforcement officials before a recommendation is sent to the SEC and by extending the standard time for a “Wells submission” from two weeks to four. Link to Keynote Address here U.S. Federal Government Shutdown Halts Regulatory Activity On 1 October 2025, the U.S. federal government began a shutdown that lasted the entire month of October, after Congress failed to pass necessary funding legislation. This action resulted in the immediate furlough of the majority of “non-essential” staff across federal agencies, including the SEC. The SEC operated with a very limited number of staff members who were available to respond to emergency situations with a focus on market integrity and investor protection. Certain systems, including EDGAR, continued to operate. Consequently, all non-critical agency activities were suspended, which included the review of routine filings such as mutual fund and ETF registration statements, exemptive applications, and proxy statements. Despite the government shutdown, SEC Chairman Paul Atkins delivered several key speeches in October that signaled a significant shift in the agency’s regulatory philosophy. Several divisions issued statements with additional information regarding anticipated actions during the shutdown. Link to Division of Investment Management Announcement here Link to Division of Corporation Finance Announcement here Link to Division of Trading and Markets Announcement here Link to Division of Examinations Announcement here Link to Joint Statement from the Divisions of Corporation Finance and Investment Management Announcement here