On Feb. 12, SEC Chair Mary Jo White made the opening remarks at the first meeting of the
Investor Advisory Committee which was established by
Section 911 of the Dodd-Frank Act. The committee is tasked with providing advice to the SEC on the regulation of securities
products, trading strategies, fee structures, and the effectiveness of
disclosures.
Good morning, and welcome to this year’s first meeting of the Investor
Advisory Committee. Thank you all for making time in your busy
schedules to be here. Today, I want to very briefly update you on a few
recent developments at the Commission and give you a glimpse of some of
what lies ahead in 2015.
White proceed to provide an update on several rules that regulate market technology and enhance disclosures to investors:
- In November, the SEC adopted Regulation Systems Compliance and
Integrity (“Regulation SCI”) which applies to the regulation and disclosure of "exchanges,
clearing agencies, FINRA, the MSRB, securities information processors,
and alternative trading systems accounting for the bulk of equity
trading on such systems."
- In December, White recounts the announcement that the Division of Investment
Management is developing recommendations for the SEC to address portfolio composition with the aim of modernizing and enhancing data reporting for funds and investment
advisers.
- White also discusses the two rules adopted already in 2015, 1) under Title VII of the Dodd-Frank
Act, which brings transparency in the over-the-counter derivatives
market, and 2) the requirement of disclosure about whether directors, officers and
other employees are permitted to hedge the market value of securities obtained through equity-based compensation.
Looking ahead, White discussed the continued implementation of the Dodd-Frank and JOBS Act mandates, including:
the
additional Title VII and executive compensation rulemakings under
Dodd-Frank, as well as Regulation A and crowdfunding under the JOBS Act.
We will also be busy in a number of other important areas, including,
to name just a few, enhancements of our equity and fixed income market
structure, the asset management initiatives I mentioned, our disclosure
effectiveness review, and enhancing broker-dealer financial
responsibility requirements.
To read the full speech, click
here.
