As a further indication of the SEC's focus on the asset management industry, on November 1, 2019 the Commission formally established an Asset Management Advisory Committee. This follows the SEC's recent announcement of its intent to establish the committee. According to the published notice, the committee's objectives and scope of its activities are to provide the Commission with diverse perspectives on asset management – including (i) trends and developments affecting investors and market participants, (ii) the effects of globalization, including as it relates to operations, risks and regulation, and (iii) changes in the role of technology and service providers – as well as related advice and recommendations.
The committee has an initial two-year term, which can be renewed by the Commission, and will meet at such intervals as are necessary to carry out its functions. A maximum of 21 voting members will be appointed to the committee – a press release issued by the SEC identified the initial members of the committee. The announcement also referenced a committee charter which, though not made publicly available as of this date, contemplates that the full committee will meet four times annually.
As the Commission will use the committee to ensure regulations meet the needs of investors and market participants, investors and market participants should look to the committee's advice and recommendations as guidance with respect to trends in the asset management space.
SEC Announces the Formation of Asset Management Advisory Committee
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