The Senate Banking Committee plans to hold an executive session Wednesday to vote on the two new Securities and Exchange Commission nominees — Hester Peirce and Robert Jackson.
Peirce, a Republican, and Jackson, a Democrat, testified at a nomination hearing on Oct. 24 before the committee.
If confirmed by the Senate Banking Committee Wednesday, their nominations for SEC commissioner would move to the full Senate for consideration.
Mercatus fellow Hester Peirce and Columbia Law School professor Robert Jackson did not include a fiduciary rule among their list of the top priorities the commission should tackle during their Oct. 24 testimony — citing cybersecurity, oversight of the Financial Industry Regulatory Authority and executive compensation as more pressing issues.
Jackson, expressing his first public views on a fiduciary rule, responded that the SEC “should have an important role in the development of these fiduciary standards; it is a natural area for the SEC to do a rulemaking,” citing Clayton’s work with Labor and other regulators “to develop the SEC’s presence.”
Refraining from commenting “too much on a matter that might come before me if I were confirmed,” Jackson continued, “my own view in developing this type of standard is to make sure that the market and investors have consistency. My concern is that investors are one day going to think they have one standard of protection with retirement assets, and another standard of protection with their brokerage accounts; I think that kind of confusion is not only costly, but doesn’t let investors know what they need to know about the protections they have.”
Peirce, a Republican, reiterated her concerns about Labor’s rule “as it’s currently written,” stating that she’s “glad that calmer minds have prevailed and that people at DOL and at the SEC are taking a look at it.”
She added: “It’s important to work with the states as well and try to get everyone in a room to work together for the objective that everyone has, which is to make sure that investors know the type of service they’re getting and that they have access to service.”