The bill repeals the provision and clarifies that the existing FOIA provision will protect against the release of confidential information contained in the records of any entity that falls under the SEC’s regulatory authority.
The House is expected to act soon on the legislation.
The SEC has argued that it needs the broader Freedom of Information Act exemptions to ensure financial firms that vital company information is protected and isn't released to the public.
Four senators cosponsored the legislation -- Patrick LeahyPatrick LeahyLawmakers talk climate for Earth Day, Science March Poll: Sanders most popular senator in the US Senate Dems offer bill to restore internet privacy rules MORE (D-Vt.), Ted Kaufman (D-Del.), John CornynJohn CornynSenate's No. 2 Republican: Border tax 'probably dead' McConnell: Senate will pass short-term funding bill to avoid shutdown The Hill's 12:30 Report MORE (R-Texas) and Chuck GrassleyChuck GrassleyComey to testify before Senate Judiciary Committee GOP to kill language exempting staff from new ObamaCare repeal bill House cyber chairman wants to bolster workforce MORE (R-Iowa).
Leahy said FOIA "has long recognized the need to balance the Government’s legitimate interest in protecting confidential business records, trade secrets and other sensitive information from public disclosure, and preserving the public’s right to know."
When the FOIA provision was added for the SEC "we sought to ensure that the SEC had access to the information that the Commission needed to protect American investors – not to shield information from the public," Leahy said.