How Trump's Project 2025 will affect investors: the SEC 

From page 831:

Eliminate all administrative proceedings (APs) within the SEC except

for stop orders related to defective registration statements. The SEC

enforcement system does not need to have both district court cases and

APs. Alternatively, respondents should be allowed to elect whether an

adjudication occurs in the SEC’s administrative law court or an ordinary

Article III federal court.24 

End the practice of delegating the decision to initiate an enforcement case.

The SEC Chairman—and possibly the U.S. Government Accountability

Office (GAO)—should study whether other Commission delegation of

authority to staff should be narrowed and whether sunsetting of such

delegation of authority should be required. 

Obviously this is all calculated to weaken the SEC's ability to protect investors and call to account bad actors. Just what you would expect from a serial bankrupt like Trump.

PDF of the complete text of Project 2025  

What are Project 2025’s ties to the Trump campaign? 

 How Trump's Project 2025 will affect investors: Consolidated Audit Trail 

From page 831:

Terminate the Consolidated Audit Trail (CAT) program.

From the SEC:  

Rule 613 (Consolidated Audit Trail)

The Commission adopted Rule 613 to create a comprehensive consolidated audit trail that would allow regulators to efficiently and accurately track all activity throughout the U.S. markets in National Market System (NMS) securities. Among other things, the rule requires the self-regulatory organizations (SROs) to jointly submit a plan – called an NMS plan – to create, implement and maintain a consolidated audit trail. The rule specifies the type of data to be collected and when the data is to be reported to a central repository.

Clearly the CAT program enables auditors to determine what is actually going on in a company. Given his many bankruptcies it is not difficult to understand why Trump and the people around him would not like this program, but it is a good thing for investors. 

How Trump's Project 2025 will affect investors: PCAOB and FINRA 

From page 830: 

To reduce costs and improve transparency, due process, congressional oversight, and responsiveness, PCAOB and FINRA should be abolished, and their regulatory functions should be merged into the SEC.   

 What Is the Public Company Accounting Oversight Board (PCAOB)?

The Public Company Accounting Oversight Board (PCAOB) is a non-profit organization that regulates auditors of publicly traded companies. The purpose of PCAOB is to minimize audit risk. In particular, the PCAOB oversees the audits of public companies, brokers, and dealers registered with the U.S. Securities and Exchange Commission (SEC)

KEY TAKEAWAYS:

The Public Company Accounting Oversight Board (PCAOB) is a non-profit organization that regulates audits of publicly traded companies to minimize audit risk.

The PCAOB was established at the same time as the Sarbanes-Oxley Act of 2002 to address the accounting scandals of the late 1990s.

The board protects investors and other stakeholders of public companies by ensuring that auditors follow strict guidelines. 

What Is the Financial Industry Regulatory Authority (FINRA)?

The Financial Industry Regulatory Authority (FINRA) is an independent, nongovernmental organization that writes and enforces the rules governing registered brokers and broker-dealer firms in the United States.

Its stated mission is "to safeguard the investing public against fraud and bad practices." It is considered a self-regulatory organization.

FINRA was created as the result of the consolidation of the National Association of Securities Dealers (NASD) and the member regulation, enforcement, and arbitration operations of the New York Stock Exchange (NYSE) in 2007. The consolidation was meant to do away with overlapping or redundant regulation and reduce the cost and complexity of compliance. 

Clearly these organizations were created in the aftermath of financial crashes to protect investors. Like so much from Trump's Project 2025, this is ill advised.

PDF of the complete text of Project 2025  

What are Project 2025’s ties to the Trump campaign? 

Alice Marshall reads Trump's Project 2025 so you don't have to

I will be writing a series of posts on how Trump's Project 2025 affects investors, business, technology and science. I will be going into detail with page numbers for the benefit of those who share my fascination with this sort of information.