In recent testimony before the House Financial Services Committee, SEC Chair White discussed “the recent activities of the U.S. Securities and Exchange Commission (SEC), our fiscal year 2015 budget request, and our plans to continue to fulfill our broad, three-part mission: to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.” Her testimony included an overview of the work of each of the SEC’s Divisions and offices.
With respect to the Division of Investment Management, Chair White discussed the Division’s rulemaking efforts. She stated that adopting a final money market fund rule is “a priority for the Commission in 2014.” In addition, she stated that IM staff is developing a recommendation “to enhance and modernize the information that funds are reporting to the Commission to give us more timely and useful information about fund operations and portfolio holdings . . .” She also mentioned the recent re-opening of comments on the SEC’s proposed rules concerning target date funds to seek comment on a recommendation regarding the glide path illustration for those funds.
Chair White discussed the Division’s efforts to better monitor risk in the industry, noting the creation of the Risk and Examinations Office (REO) which was required by Dodd-Frank. She explained that REO “monitors trends in the asset management industry and carries out the Division’s inspection and examination program.” She reported that staff from REO as well as other areas of the SEC had met with senior management from large asset managers “as part of the staff’s ongoing outreach efforts.”