CHARLESTON — West Virginia Attorney General Patrick Morrisey is resisting efforts that would force companies to make policy statements unrelated to their financial performance, a requirement that he calls unconstitutional and says would serve a political agenda and trample upon free speech.
Morrisey wrote a letter March 25 to U.S. Securities and Exchange Commission Acting Chairwoman Allison Lee.
For instance, Morrisey argues it would be unlawful for the commission to compel public companies to make statements regarding environmental, social and governance matters that are separate from financial performance.
“This is federal overreach and political activism at its worst,” Morrisey wrote. “West Virginia citizens will not support efforts to allow ‘mission creep’ in all of the federal agencies simply to advance a President’s political agenda.
"When you mandate statements unrelated to protecting against fraud, for example, you ignore what is already accessible in the public marketplace on sensitive topics, and needlessly transform securities enforcement into political activism.”
Morrisey's letter stems from Lee's recent comments at the Center for American Progress. Morrisey suggests her commission should focus upon its core mission of requiring statements that are material to future financial performance – not statements that drive an administration’s political agenda.
Morrisey also says the SEC’s proposed regulations and enforcement actions must comply with the First Amendment. His letter specifically cited a series of recent U.S. Supreme Court decisions that hold regulations that implicate the First Amendment to the highest standard, requiring that such rules must advance a compelling government interest, directly and substantively relate to advancing that interest and represent the least restrictive means.