SEC Working on New Standards of Conduct, Clayton Says

By John Iekel • October 05, 2017 • 0 Comments
Securities and Exchange Commission Chairman Jay Clayton reiterated on Oct. 4 that he is “focused on the standards of conduct” for investment professionals. He made his remarks in testimony before the House Financial Services Committee concerning the SEC’s agenda, operation and budget.

Clayton’s testimony echoed comments he made Sept. 26 before the Senate Committee on Banking, Housing and Urban Affairs.

Clayton told the House committee that he has “made clear in public statements” that he is focused on the standards of conduct and that the “extensive study” of the matter illustrates its complexity and how dynamic the market is.

As he did before the Senate body, Clayton told the House committee that the SEC staff “understands mutual fund complexes are considering various approaches to accommodate broker-dealers’ efforts to level compensation across similar types of products in response to the DOL rule” and outlined what they are, as well as the steps broker-dealers are taking to the Department of Labor’s (DOL) fiduciary rule.

He also told the committee that his agency understands the importance of working together “closely and constructively” with the DOL to implement appropriate standards of and is “engaging expeditiously and constructively with our colleagues at the DOL to best serve the interests of investors.”

Clayton also repeated that the standards the SEC seeks “should be clear and comprehensible to the average investor, consistent across retirement and non-retirement assets and coordinated with other regulatory entities, including the DOL and state insurance regulators” and that he looks forward “to continuing to work with my fellow Commissioners and the SEC staff” as they evaluate what steps to take.




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