The Securities and Exchange Commission published a notice in the Federal Register on January 23, 2026, soliciting public comments on the proposed extension of an information collection activity related to the Ombudsman Matter Management System (OMMS) Submission Form. This form serves as a voluntary electronic tool for retail investors to submit inquiries, complaints, and recommendations to the SEC Ombudsman. The notice, issued under the Paperwork Reduction Act of 1995, aims to renew approval for this collection, which facilitates the Ombudsman's role in resolving investor issues with the Commission or self-regulatory organizations. It highlights the system's importance in handling over 2,500 annual investor contacts, with an estimated burden of 750 hours for 1,500 form submissions each year. This development underscores ongoing efforts to streamline investor assistance while minimizing administrative burdens, as required by federal law.
Background on the SEC Ombudsman and OMMS
The SEC Ombudsman operates within the Office of the Investor Advocate, established to support retail investors navigating securities markets. Section 4(g)(8) of the Securities Exchange Act of 1934 mandates the Ombudsman to act as a liaison between the Commission and retail investors, addressing problems with the SEC or self-regulatory organizations such as stock exchanges or broker-dealer associations. The law also requires the Ombudsman to review and recommend policies for encouraging investor questions on securities compliance, establish confidentiality safeguards, and submit semi-annual reports evaluating effectiveness.
The OMMS Submission Form emerged as a practical response to these duties. It provides a structured, electronic method for investors to categorize their issues via drop-down options, potentially offering automated responses. Investors can submit details like their contact information, the nature of the complaint, involved parties, available documents, and prior actions taken. Access is available through the SEC's Ombudsman webpage or directly at a dedicated URL. While voluntary, the form complements other contact methods like phone, email, or mail, ensuring equal service for all users.
This collection aligns with broader federal efforts to enhance investor protection, building on the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which created the Investor Advocate role. Historical precedents, such as prior OMB approvals for similar SEC forms, demonstrate a pattern of balancing data utility with reduced paperwork burdens.
Purpose and Functionality of the OMMS Submission Form
The primary goals of the OMMS are to simplify public access to the Ombudsman and improve internal workflow for processing investor contacts. According to the notice, the form enables the Ombudsman to record, analyze, and respond to submissions, which may involve answering questions, handling complaints, or referring matters to enforcement or examination teams. It also supports trend analysis and volume tracking, informing the required semi-annual reports.
Key players include the SEC's Office of the Investor Advocate, which oversees the Ombudsman, and the Office of Management and Budget (OMB), which must approve the collection under Control Number 3235-0748. The form's design reflects input from retail investors, who submit over 2,500 contacts annually, with about 1,500 using the OMMS specifically. As noted in the Federal Register, "The dual purpose of the OMMS Submission Form is to make it easier for the public to contact the agency with complaints, questions, tips, or other feedback and to streamline the workflow of Ombuds staff that record, process, and respond to investor contacts."
No mandatory use is imposed, preserving flexibility. Investors opting out receive identical attention, emphasizing the SEC's commitment to accessibility without coercion.
Burden Estimates and Compliance with the Paperwork Reduction Act
Under the Paperwork Reduction Act, agencies must justify information collections and estimate their burdens to avoid unnecessary paperwork. The SEC calculates the OMMS form's annual burden at 750 hours, derived from 1,500 respondents each taking about 30 minutes to complete it. This figure accounts for the voluntary nature and the form's efficiency features, such as drop-down menus.
The notice invites comments on necessity, accuracy of estimates, ways to enhance quality, and burden minimization, including through technology. Comments are directed to Austin Gerig, the SEC's Director and Chief Data Officer, with a deadline of March 24, 2026. A subsequent 30-day notice will follow, providing another comment opportunity before OMB review.
This process reflects political forces prioritizing regulatory efficiency, as seen in executive actions under various administrations to reduce federal paperwork. Perspectives vary: investor advocates may praise the form for empowering retail participants, while critics could argue it adds minimal value if alternatives exist. Regulators view it as essential for data-driven oversight, without endorsing any stance.
Potential Implications for Investors and Regulation
Short-term effects include continued access to a user-friendly complaint mechanism, potentially resolving issues faster for retail investors facing market disputes. Long-term, aggregated data from OMMS could influence SEC policies, such as strengthening investor education or enforcement priorities based on complaint trends.
Different viewpoints emerge. Proponents highlight improved transparency and accountability, aligning with the Exchange Act's goals. Skeptics might question the burden's justification if usage is voluntary and alternatives suffice, though the notice counters this by noting practical utility in workflow and analysis. Legal precedents like OMB reviews of similar forms, such as those for whistleblower tips, suggest approvals are routine when burdens are reasonable.
The system's confidentiality safeguards address privacy concerns, ensuring communications remain protected as per statutory requirements. Overall, this extension proposal maintains a balance between investor support and administrative efficiency, without introducing new regulatory hurdles.
In summary, the SEC's notice advances a key tool for investor engagement under established legal frameworks. Potential next steps involve public input shaping the final proposal, followed by OMB approval or adjustments. Ongoing debates may center on digital accessibility versus paperwork burdens, with challenges including adapting to evolving investor needs or technological advancements. These trajectories could enhance the system's role in fostering trust in securities regulation, while navigating calls for further streamlining.
