The Securities and Exchange Commission (SEC) has announced the formation of a new Investor Advisory Committee. The 21-member committee was required by Dodd-Frank Act and replaces the former advisory committee that was formed in the aftermath of the financial crisis.
Under Dodd-Frank, the committee will advise the SEC on regulatory priorities, the regulation of securities products, trading strategies, fee structures, the effectiveness of disclosure, and on initiatives to protect investor interests and promote investor confidence and the integrity of the securities markets and submit findings and recommendations.
“The SEC’s new Investor Advisory Committee is made up of individuals with a broad range of backgrounds and experiences,” Mary Schapiro, SEC chairwoman, said in a statement. “I look forward to their insight and recommendations as to how we can further the SEC’s critical investor protection mission.”
Members of the newly formed committee were nominated by all five sitting Commissioners and represent a wide variety of interests, including senior citizens and other individual investors, mutual funds, pension funds, and state securities regulators. Joseph Dear, chief investment officer, California Public Employees’ Retirement System (the largest hedge fund investor in the U.S.) has been appointed to the newly formed committee. Other members include Barbara Roper, director of investor protection, Consumer Federation of America, Kurt Schacht, managing director, CFA Institute, and Eugene Duffy, senior executive vice president, Paradigm Asset Management. Obviously an effort has been made to get representatives with divergent viewpoints to collaborate on SEC rules.
The Investor Advisory Committee will begin its work “in the near future, ” according to the SEC. It is expected that the new committee members will build on the framework established by their predecessors.
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