Less than a full week after President Obama signed sweeping financial regulation into law, the SEC announced Tuesday, July 27, several initiatives to make the study and rulemaking process “open” and “transparent.”
The SEC will address many concerns of investors as it fulfills its mission to provide the framework for “more stable financial markets that better protect investors and facilitate the capital formation on which our workers, investors, companies, and economic growth rely,” SEC Chairman Mary Schapiro said in a speech on Tuesday before the Chamber of Commerce in Washington.
On the same day, Schapiro announced an “Open Process for Regulatory Reform Rulemaking” and said it is Seeking Public Comments to Inform Study of Obligations of Broker-Dealers and Investment Advisers. The public has 30 days to comment on the Study. If you send a comment by e-mail, include File Number 4-606 on the subject line.
The Committee for the Fiduciary Standard released a statement on July 28 praising Schapiro “for speaking out on extending the fiduciary standard, and its significance to maintaining public confidence and trust in our capital markets. Since her appointment by President Obama, Chairman Schapiro has repeatedly discussed the importance of linking personalized investment advice and fiduciary duty.” (This editor is a member of the Committee.)
The Committee stated that it is “concerned” that individual investors might get the idea that there was only this 30-day “opportunity to express their opinions on standards of care, and may have the effect of discouraging retail investor participation. This would be unfortunate. We believe this point should be clarified, and the opportunity for providing additional comment, in the event of rule-making after the study, made clear.”
“Based on Chairman Schapiro’s statements in support for extending the fiduciary standard to all professionals providing advice,” according to the Committee’s statement, it “expects the SEC to engage in further rule-making after it completes its study on standards of care.”
The SEC also announced it is Seeking Public Comments on SEC Regulatory Initiatives Required by Dodd-Frank Act. It has created online forms and e-mail addresses–specifically for public comments–organized by topic, to enable anyone who wishes to
comment to do so. Comments will be posted, unedited, under those topics–in fact there are a number of comments made on July 27 that are already posted.