During a speech to the Economic Club of New York on July 12, 2017, SEC Chairman Clayton discussed the new focus areas that the SEC will have during his tenure. As expected, there was a strong emphasis on market structure and capital formation activities that reflect the Chairman’s experience as an M&A lawyer.
Highlights of the SEC’s expected new areas of focus are as follows:
- The Commission will continue its disclosure-based rulemaking process as it addresses new areas
- Technological innovations are important for the SEC to continue its market surveillance functions and keep up with the industry; for instance, machine learning and AI tools will be utilized
- Cost of compliance will be highly considered for any new rulemaking and will include a review of implementation and examination costs
- Cybersecurity concerns remain on the agenda and will continue to be highlighted through coordinated efforts with other regulatory bodies
- Capital formation rules such as the JOBS Act and related Rule 3-13 of Regulation S-X will be a focus as the Commission strives to improve access to capital for smaller companies
- Fixed income markets and the lack of transparency in those markets will be addressed by the to-be-created Fixed Income Market Structure Advisory Committee, like the current Equity Market Structure Advisory Committee (EMSAC)
- The Commission plans to work with the DOL on the Fiduciary Rule and provide insight and guidance to the industry on the subject
- There will be a new spotlight on consumer education via more consumer based material distributed by the SEC to educate investors
View the full copy of Chairman Clayton’s speech, “Remarks at the Economic Club of New York,” July 12, 2017
