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Just as the Securities and Exchange Commission (SEC) has taken on more duties in implementing financial services reform, especially under the Dodd-Frank law, it is losing two key players from its team.
In an anticipated departure, the SEC on Friday announced first that Andrew “Buddy” Donohue (left), the director since 2006 of the Commission’s Division of Investment Management, left the Commission on Friday. SEC Chairman Mary Schapiro then named one of her senior advisors, Jennifer B. McHugh, to replace Donohue until a permanent director was named.
Donohue, who led the SEC’s efforts in implementing rules to improve oversight of money market funds, increase investment advisor custody controls, and curtail investment advisor "pay-to-play" abuses. Donohue, 59, was named to the SEC by then-Chairman Christopher Cox; he had previously been Global General Counsel for Merrill Lynch Investment Managers.
McHugh (left), who has been with the SEC for 11 years, was the leader of the SEC’s mandated study of fiduciary duty under the Dodd-Frank Act.
“Jennifer is extremely well-versed in the operations of the Division and has extensive knowledge of the mutual fund industry," Schapiro said in the announcement. "I rely upon Jennifer for her wise counsel and practical insight."
The SEC will also be losing Henry Hu, director of the Commission’s Risk Division, in January, as he plans to return to the University of Texas, where he previously was a professor at the University’s School of Law. Hu has been with the SEC since the risk division was launched in September 2009. The division includes the offices of Economic Analysis and Risk Assessment.