SEC Investor Advocate Reports 2024 Objectives

In its submission of a required report to the Senate Banking Committee and the House Financial Services Committee, the SEC Investor Advocate outlined policy objectives for fiscal year 2024. These include a focus on broker and advisor conduct, advisor outsourcing, transaction costs in the mutual funds market, risks associated with investing in private markets, and fairness in the equity markets.

The Investor Advocate described its efforts as:

• aligning regulations and disclosures with reasonable investor expectations by "rigorously" encouraging enforcement of Regulation BI;
• evaluating private markets with regard to the (i) associated investment risks, such as fraud or unreliable disclosures and (ii) reviewing the definitional thresholds for "accredited investor";
• considering whether current equity market structures are fair to investors and whether current market incentives favor or disfavor long-term investors;
• ensuring "strong oversight" of investment advisers’ third-party service providers to protect investors, while also being sensitive to compliance costs for investment advisers; and
• addressing investor concerns regarding the "dilution of long-term shareholders’ interests in mutual funds."