SEC Chairman Announces 8 Core Principles

This is a nice article about a speech given by the new Chairman of the SEC, Jay Clayton.  The article says that the speech was aimed at Mr. and Mrs. 401(k).  His 8 core principles?

  1. The SEC must equally emphasize all three parts of its mission to (1) protect investors, (2) maintain fair, orderly and efficient markets, and (3) facilitate capital formation
  2. That mission is guided by what’s best for the Main Street investor – the 401(k), long-term investor
  3. The SEC’s existing regulatory regime is sound and does not need major changes
  4. Increased regulations have resulted in a decrease in publicly traded companies which could result in, as Clayton said, long-term “not good” economic impact [my emphasis added]
  5. The SEC must evolve along with the market, including through use of technology, while also weighing the costs of regulatory change
  6. The SEC must not only adopt rules but continue to review how those rules are functioning
  7. Rules requiring companies to demonstrate compliance are part of the cost of new rules [my comment – huh?]
  8. The SEC must coordinate with other financial regulators, especially the Commodity Futures Trading Commission in regulating over-the-counter derivatives

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