Legal challenges to the SEC’s rules on corporate climate disclosure and hedge fund fee reporting are a harbinger of more litigation to come over the agency’s regulations, the office said. the agency’s inspector general.

The Securities and Exchange Commission is facing increased judicial scrutiny under Democrat Gary Gensler, SEC chairman since 2021, according to the Office of Inspector General’s annual report. report on the agency’s main management and performance challenges, published Monday. The report cites several legal challenges, including a case in which a court struck down hedge funds’ fee disclosure rules in June and ongoing litigation over March rules requiring firms to be shielded from issuances of greenhouse gases.