"Gary Gensler, President Biden’s pick to run the Securities and Exchange Commission, is expected to seek higher fines and new disclosure requirements for public companies, lawyers and former regulators say." - Mark Mauer, The Wall Street Journal, January 27, 2021.
Gensler's branding is all about tough. Both public corporations and the finance industry can anticipate not only more regulations per se. There also could be a request for more "insight" on issues such as climate change, diversity in the workforce and political spending. Already there have been additional compliance mandates for disclosure. Joe Biden is also focused on the composition of boards of directors. Remember how ineffective in preventing the alleged fraud at Theranos that board had been.
Gensler's approach to regulation could shift to prescriptive rule-making. Currently it has been more principle-based and customized to be company-specific. That means things will go "by the book."
Fines could also be increased. That could render impractical the familiar tactic of bypassing the regulation and just ponying up the fine.
All this signals a significant uptick in demand for law firm regulatory practices. Of course, that's likely to set off a new round of lateral recruiting.
This nomination, of course, has to be approved by the U.S. Senate.
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