The SEC announced yesterday that Andrew J. Donohue, the Director of the agency's Division of Investment Management for over four years, will step down from his post in November. Donohue departs the SEC after an active and energetic tenure, and with an impressive list of accomplishments:
Mr. Donohue helped develop significant regulations governing the $39 trillion asset management industry, including investor-oriented rules to improve oversight of money market funds, increase investment adviser custody controls, and curtail investment adviser "pay-to-play" abuses. Under his leadership, the SEC also implemented a new mutual fund summary prospectus and investment adviser disclosure brochure, and proposed to replace rule 12b-1 mutual fund distribution fees with a reformed regulatory framework. The agency also recently proposed rule amendments to improve information in target date fund advertisements and marketing.
In the view of the Forum, under Donohue's leadership, the Division of Investment Management pursued a host of initiatives that will benefit shareholders for years to come. According to the Forum's Executive Director, Susan Ferris Wyderko:
During what has been a tumultuous period in both the US and global markets, Buddy could be counted on to keep the needs of mutual fund shareholders high on his list of priorities. As part of those efforts, he spent a great deal of time meeting with and understanding the concerns of independent directors, who represent fund shareholders. Investors have been well served by having him lead the Division, and we are very grateful for all of his hard work.
The Commission's press release is available at: http://www.sec.gov/news/press/2010/2010-151.htm
The Forum's press release congratulating Mr. Donohue is available here.