SEC Chair Jay Clayton, Commissioner Hester M. Peirce and Division Director Dalia Blass highlighted the importance of ensuring that "Main Street investors" are protected through effective asset management regulation.
At the inaugural meeting of the Asset Management Advisory Committee ("AMAC"), Mr. Clayton emphasized that the SEC works to advance policies aimed at increasing investment choices and access to the private markets for Main Street investors. He urged the AMAC to identify specific ways that the SEC can enhance efficiency, capital formation and investor protections.
Ms. Peirce called attention to some "thornier issues" facing the industry, such as (i) the changing dividing line between public and private securities offerings, (ii) the globalization of asset management and (iii) customer privacy and data protection. She underlined the difficulties imposed on investment advisers who must comply with privacy regulations at the state, federal and international (or "GDPR") level. In particular, she encouraged the AMAC to consider the challenges that asset managers face regarding privacy protection and data security.
Ms. Blass urged the AMAC to engage in "thoughtful dialogue" with investors when examining potential retirement trends and risks. She emphasized the importance of including experts who can share diverse viewpoints.
Commentary
When examining "retail" investment issues, the regulators must confront the trade-off between (i) increasing the choices available to retail investors and (ii) limiting the risks that retail investors are permitted to accept (without the selling firm being at risk for a suitability violation). There is no easy answer.
Primary Sources
- SEC Statement, Jay Clayton: Opening Remarks at the Inaugural Meeting of the Asset Management Advisory Committee
- SEC Statement, Hester Peirce: Opening Remarks at the Inaugural Meeting of the Asset Management Advisory Committee
- SEC Statement, Dalia Blass: Opening Remarks at the Inaugural Meeting of the Asset Management Advisory Committee
- SEC Statement, Elad L. Roisman: Statement at the Inaugural Meeting of the Asset Management Advisory Committee
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