SEC Chairman Jay Clayton said Wednesday it is important for the SEC to work with the Department of Labor to bring clarity and consistency to the standard of care obligations of investment professionals.
“Any action will need to be carefully constructed, so it provides appropriate and meaningful protections but does not result in Main Street investors being deprived of affordable investment advice or products,” Clayton said in prepared remarks released for his address to the Economic Club of New York on Wednesday.
In what is being billed as his first major address as SEC chair, Clayton called the long-term interests of Main Street investors the most important mission for the SEC.
“How does what we propose to do affect the long-term interests of Mr. and Ms. 401(k)? Are these investors benefitting from our efforts? Do they have appropriate investment opportunities? Are they well informed? Speaking more granularly: What can the commission do to cultivate markets where Mr. and Ms. 401(k) are able to invest in a better future?” Clayton said.
Clayton said he plans to be aggressive in having the SEC look at whether rules are working as intended.
“We should not be shy,” he said.
He also said he wants no wholesale changes in the SEC's regulatory approach.
As the SEC changes to adapt to the new technologies and other innovations in the entities it regulates, Clayton said the agency must keep in mind regulatory changes could add to the costs of companies, which would be passed on to shareholders and investors.
On cybersecurity, he said that while the SEC expects companies to take its cyber obligations seriously, the regulator needs to be cautious about punishing responsible companies who nevertheless are victims of sophisticated cyber crimes.