SEC Officials Highlight Efforts to Address Current Market Conditions

SEC Chair Jay Clayton and Division of Investment Management Director Dalia Blass described agency efforts to monitor and address the effects of COVID-19 on the market.

At an Asset Management Advisory Committee ("AMAC") meeting, Mr. Clayton noted that the Division of Investment Management is (i) working with the asset management industry, specifically investment advisers and funds that have material market exposures, and (ii) providing "targeted, conditional, and temporary" relief from certain regulatory requirements. He stated that the SEC continues to collaborate with other regulators, including Treasury, Federal Reserve Board and Federal Reserve Bank of New York, to assess necessary regulatory responses.

Ms. Blass stated that she remains hesitant to recommend regulatory changes in response to the pandemic as it continues to evolve. Ms. Blass underscored the ability of businesses to respond to the current situation by adjusting their continuity plans, turning physical meetings into virtual ones, and permitting trading desks to span multiple locations while still operating as a unit, all without regulatory action. Additionally, Ms. Blass described the Division's effort to continue with its core initiatives and regulatory agenda, including modernizing the asset management industry's regulatory framework and improving the investor experience.