SEC Chairman Mary L. Schapiro today said the agency will make priorities in its capital market reforms addressing the inherent conflicts of interest credit-rating agencies face as a result of their compensation models and reducing systemic risk by encouraging centralized clearinghouses for credit default swaps.
In a speech in Washington, a copy of which was e-mailed to P&I Daily, Ms. Schapiro said the SEC plans to form an investor advisory committee, saying pension funds, 401(k) plan participants and other investors need to feel that they have someone on their side that they can go to the SEC to seek redress, or to have their opinions heard. The committee would ensure that the commission hears firsthand about the issues most concerning to investors, she said.
SEC spokesman John D. Heine said no details were available on the proposals in the speech.
Other priorities for the SEC are to encourage use of safe custody of customer assets by any broker-dealer or investment adviser and toughen risk-based oversight of broker-dealers and investment advisers.