Advocates for more transparency in the political system were dealt another blow this week as the Securities and Exchange Commission dropped a potential rule on the disclosure of corporate campaign contributions from its 2014 agenda.
The regulatory agency, which is mandated to protect investors, is required by law to submit its agenda for the next year to the Office of Management and Budget. A conspicuous absence this time was consideration of a rule that would require publicly traded companies to disclose the specifics of their political spending to shareholders — an item that was included in the SEC’s 2013 agenda but was never acted upon.
Individuals, interest groups, and corporations can write to the SEC to show they are in favor or opposed to proposed regulations. This particular provision garnered more than 600,000 public comments, more than any other rule in the SEC’s history, mostly written in favor of more disclosure. That fact alone makes the SEC’s decision all the more disappointing to those agitating for reform.