At the nonpartisan Economic Club of New York, SEC Chair Jay Clayton highlighted the guiding principles behind his regulatory agenda. Mr. Clayton stated:
Staying up to Date with Market Evolution - the SEC must keep pace with evolving technologies and utilize advancements to improve regulatory efficiency, while also monitoring costs and additional burdens associated with technological evolution in the capital markets.
Cooperation with Other Entities - the SEC must coordinate and cooperate with domestic and foreign regulators, other government entities, and self-regulatory organizations in order to ensure an effective regulatory environment. In particular, Mr. Clayton pledged to focus on (i) SEC and CFTC coordination concerning authority over swap markets and (ii) cybersecurity management.
Importance of Cumulative Consideration - the SEC must consider the cumulative effect of incremental regulatory changes, and the decline in initial public offerings in the United States (which reflects the unwanted effect of regulatory adjustments). He suggested that increased disclosure requirements and other regulatory burdens have contributed to the decline.
Prioritization of Main Street Investors - the SEC must prioritize the needs of Main Street investors, and ensure that the markets foster a diversity of investment opportunities.
Mr. Clayton explained how the SEC plans to put these principles into action. He pledged:
Enforcement and Examination - to take action against scammers who manipulate microcap offerings, as well as those who target elder investors, and to utilize enforcement abilities to protect market liquidity and integrity. He also committed to develop sound strategies for evaluating enforcement actions against companies that are victims of cyberattacks.
Investment Advice and Disclosures - that the SEC will cooperate with the Department of Labor in order to effectively navigate the development of a fiduciary standard. He added that the Commission will work to improve disclosures so that investors and their advisors have more access to information about potential investments.
Capital Formation - to facilitate increased participation in public markets, and to make adjustments that will encourage more companies to go public without depleting the availability of capital from private markets.
Mr. Clayton described further areas of focus regarding equity market structure and the improvement of educational resources available to investors.
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