Investor protection must be top priority

As we wait during the transition in leadership of the Securities and Exchange Commission, we feel the future course on numerous regulatory issues is unclear, particularly as it relates to investor protection.

Wall Street lawyer Jay Clayton has been tapped for the spot and, whether with him or another nominee, we are hopeful the Senate confirmation hearings will explore a range of issues regarding investor protection including resources for registered investment adviser examinations, uniform fiduciary duty, fund product fee disclosure, simplified SEC disclosure rules, other potential rollback of the Dodd-Frank Act, the proliferation of non-GAAP measures and, most importantly, the overall funding for the SEC.

As someone who has been dealing with the SEC regularly for the last decade in various advisory capacities, I believe that to achieve these aims Mr. Clayton, if confirmed, will need to pivot. He has spent much of his career representing the commercial interests of corporate issuers and bulge-bracket finance firms, and will need to adjust in order to embrace the equally important investor protection perspectives so vital to our market.

We believe the new leader of the SEC, our primary market regulator, has a terrific opportunity to bolster our markets and position in the rivalry for global capital. In doing so, he (or she) will need to make certain investors are not given short shrift.


SEC Investor Advisory Committee and

CFA Institute

New York

This article originally appeared in the February 6, 2017 print issue as, "Investor protection must be top priority".