More On Legal & Compliancefrom The Advisor's Professional Library
- The Few and the Proud: Chief Compliance Officers CCOs make significant contributions to success of an RIA, designing and implementing compliance programs that prevent, detect and correct securities law violations. When major compliance problems occur at firms, CCOs will likely receive regulatory consequences.
- Preventing and Dealing with Client Complaints Although the SEC has not provided specific guidance on how client complaints should be handled, a firms policies and procedures should provide clear direction how to do so, as neglecting complaints can exacerbate a bad situation.
The SEC announced Monday the formation of a new Investor Advisory Committee, which is required by the Dodd-Frank Wall Street Reform and Consumer Protection Act and replaces an earlier committee that was disbanded after Dodd-Frank became law.
The new committee is made up of 21 members offering insights from a broad swath of financial interests, including senior citizens and other individual investors, mutual funds, pension funds and state securities regulators.
Members of the committee were nominated by all five sitting commissioners. Among those chosen are Mellody Hobson (left), president and director of Ariel Investments; Barbara Roper, director of investor protection at the Consumer Federation of America; Kurt Schacht of the CFA Institute; James Glassman, executive director of the George W. Bush Institute; and Steven Wallman, founder and chief executive officer of FOLIOfn.
According to the SEC, the committee will advise it on a variety of matters, including regulatory priorities, the regulation of securities products, trading strategies, fee structures, the effectiveness of disclosure, and initiatives to protect investor interests and promote investor confidence and the integrity of the securities marketplace. The committee is authorized by the Dodd-Frank Act to submit its findings and recommendations for review and consideration by the SEC.
"The SEC’s new Investor Advisory Committee is made up of individuals with a broad range of backgrounds and experiences," Mary Schapiro, SEC chairwoman, said in a statement. "I look forward to their insight and recommendations as to how we can further the SEC’s critical investor protection mission."
The other members of the new Investor Advisory Committee are:
- Darcy Bradbury, managing director and director of external affairs, D.E. Shaw & Co.
- J. Robert Brown Jr., law professor, University of Denver
- Joseph Dear, chief investment officer, California Public Employees’ Retirement System
- Eugene Duffy, partner and principal, Paradigm Asset Management Co.
- Roger Ganser, chairman of the board of directors of BetterInvesting
- Craig Goettsch, director of investor education and consumer outreach, Iowa Insurance Division
- Joseph Grundfest, William A. Franke professor of law and business, Stanford Law School
- Stephen Holmes, general partner and chief operating officer, InterWest Partners
- Adam Kanzer, managing director and general counsel of Domini Social Investments and chief legal officer of the Domini Funds
- Roy Katzovicz, partner, investment team member and chief legal officer, Pershing Square Capital Management
- Alan Schnitzer, vice chairman and chief legal officer, The Travelers Cos.
- Jean Setzfand, director of financial security for the AARP
- Anne Sheehan, director of corporate governance, California State Teachers’ Retirement System
- Damon Silvers, associate general counsel for the AFL-CIO
- Mark Tresnowski, managing director and general counsel, Madison Dearborn Partners
- Ann Yerger, executive director, Council of Institutional Investors