HR6967-119

What This Bill Does

The Public Company Advisory Committee Act of 2026 amends the Securities Exchange Act of 1934 by adding a new section 40A. It creates a Public Company Advisory Committee inside the Securities and Exchange Commission. The committee's purpose is to advise the SEC on rules, regulations, and policies related to protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation.

The committee may advise on existing and emerging SEC regulatory priorities, public-company reporting and corporate governance, proxy processes for shareholder meetings, trading in public-company securities, and capital formation. It may submit findings and recommendations, including proposed regulatory or legislative changes. It may not advise on SEC enforcement policies, practices, actions, or decisions.

The committee must have at least 10 and not more than 20 members appointed by the SEC. Members must come from public-company officers, directors, or senior officials; executives or senior managers at business, professional, trade, or industry associations representing public companies; and professional advisers or service providers to public companies, including attorneys, accountants, investment bankers, securities analysts, and underwriters. Public companies that own asset management, fixed income, investment advisory, broker-dealer, or proxy-services businesses are excluded from the officer/director member category.

Who Benefits and How

Public company officers benefit because the committee gives them a formal channel to advise the SEC on reporting, governance, proxy, trading, and capital-formation rules. Public company trade associations benefit because their senior executives can serve on the committee and press member-company concerns. Professional advisers to public companies benefit because attorneys, accountants, analysts, investment bankers, and underwriters can shape recommendations. SEC staff benefit from structured input on how proposed rules affect public-company operations. Investors in public companies may benefit if the committee improves rule design and capital-market functioning.

Who Bears the Burden and How

SEC staff must appoint members, support meetings, process findings, and respond to recommendations. Committee members must participate and develop findings on technical securities-law issues. Investor-protection advocates may bear a policy burden if the committee shifts SEC attention toward issuer and adviser concerns. Excluded financial-services businesses do not receive the same public-company seat access if they own asset management, fixed income, investment advisory, broker-dealer, or proxy-services businesses. Public companies outside the appointed membership may need trade associations or advisers to represent their views.

Key Provisions

• Establishes a Public Company Advisory Committee inside the SEC.
• Provides advisory jurisdiction over public-company reporting, governance, proxy process, securities trading, capital formation, and regulatory priorities.
• Prohibits the committee from advising on SEC enforcement policy, practice, action, or decisions.
• Authorizes findings and recommendations, including proposed regulatory or legislative changes.
• Requires 10 to 20 SEC-appointed members.
• Provides membership slots for public-company officers, trade-association executives, and professional advisers.
• Excludes public companies that own asset-management, fixed-income, investment-advisory, broker-dealer, or proxy-services businesses from one membership category.