Stockholm (NordSIP) – In his keynote address at the inaugural OECD Roundtable on Global Financial Markets on 10 September 2025, SEC Chair Paul Atkins expressed a clear disapproval for the recent efforts of international accounting rules-setting bodies to include sustainable disclosures. The comments appeared to be targeted at the EU and at European companies.
Is IFRS Underfunded?
The core of Atkins’ message is that the addition of sustainable disclosures to companies’ reporting requirements can’t but create a dangerous distraction of resources away from pre-existing financial reporting requirements, which could hinder the efficient flow of capital. This warning was wrapped in the form of a fairly complex institutional funding concern.
The SEC Chair began by reminding his OECD partners that foreign companies have been allowed to present financial statements in the USA based on the International Financial Reporting Standards (IFRS) without needing to reconcile those with the US Generally Accepted Accounting Principles (GAAP) that apply to US companies since 2007.
He then noted that his support for this simplifying initiative, as a SEC Commissioner at the time, was contingent on the fact that the IFRS enjoyed “stable funding” from the International Accounting Standards Board (IASB). This observtion was followed by a concern that the formation of the International Sustainability Standards Board (ISSB) in 2021,with the responsibility for devising sustainable finance disclosures, has increased the funding responsibilities of the IASB, which cannot but undermine the stability of funding of the IFRS.
Atkins then issued a warning: “If the IASB does not receive full, stable funding, then one of the underlying premises for the SEC’s elimination of the reconciliation requirement for foreign companies in 2007 may no longer be valid, and we may need to engage in a retrospective review of that decision.”
As if to clarify his fundamental disagreement with the sustainable finance agenda, Atkins commments that “the IASB must promote high-quality accounting standards that are focused solely on driving reliable financial reporting and are not used as a backdoor to achieve political or social agendas.”
EU Should Not Require Sustainability Disclosures
Although he struck a very conciliatory tone with the EU and EU regulatory initiatives on crypto currencies, Atkins’ keynote address also went on to criticise the EU sustainability disclosure regulations.
“In the EU, two recently passed laws—the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD)—promote a double materiality regulatory approach. These laws also impact U.S. companies with operations in the EU,” the SEC Chair said.
“I have significant concerns with the prescriptive nature of these laws and their burdens on U.S. companies, the costs of which are potentially passed on to American investors and customers. (…) Indeed, as Europe seeks to promote its capital markets by attracting more companies and investment, it should focus on reducing unnecessary reporting burdens on issuers rather than pursuing ends that are unrelated to the economic success of companies and to the well-being of their shareholders,” Atkins continued.
Endorsements and Concerns
When Trump nominated Atkins to be the Chairman of the SEC in December 2024, he described him as “a proven leader for common sense regulations,” emphasisng Atkins’belief “in the promise of robust, innovative capital markets that are responsive to the needs of Investors, & that provide capital to make our Economy the best in the World. He also recognizes that digital assets & other innovations are crucial to Making America Greater than Ever Before.”
Ahead of his nomination hearing for the position of Chairman of the SEC, U.S. Senator Elizabeth Warren wrote to Paul Atkins, questioned his aptitude for heading the US financial services authority.
In the letter, Warren pressed Atkin on his regulatory failures ahead of the 2008 financial crisis, his involvement in failed crypto exchange FTX, and his conflicts of interest from his work with big banks and financial firms. She also questioned his views on the SEC’s independence, private capital raising, market structure issues, crypto regulation, and corporate governance. Warren also asked Atkins to mitigate his financial conflicts of interest by recusing himself on issues related to his corporate clients.
“The decisions you make as Chair will have significant implications for the long-term health of American commerce and economic growth. Your decisions will also have significant impacts on the lives of hardworking Americans, as they increasingly rely on the securities markets to save for retirement and achieve their financial goals.” wrote Ranking Member Warren.
