SEC Chairman Jay Clayton says agency initiatives would help investors research advisers' backgrounds

He doesn't provide details, but says that he shares SEC Investor Advisory Committee's desire to help older investors know their advisers

Jun 22, 2017 @ 2:46 pm

By Mark Schoeff Jr.

Securities and Exchange Commission Chairman Jay Clayton said on Thursday that the agency is working on initiatives to help investors research financial advisers' backgrounds.

In remarks before the SEC Investor Advisory Committee, Mr. Clayton said that the group's input will guide him as he sets the agency's agenda. One of the committee's recommendations he highlighted was to make it easier for investors to use databases containing adviser profiles. The Financial Industry Regulatory Authority Inc. maintains BrokerCheck, while the SEC runs the Investment Adviser Registration Depository. The commitee believes the two databases could be integrated better.

"I also share your interests that our Main Street investors, particularly older investors, have the tools they need to make informed investment decisions," Mr. Clayton told the IAC at a meeting at SEC headquarters in Washington. "My office recently had the chance to follow up with staff on this topic, and I was pleased to hear that they have a number of efforts under way to simplify and enhance the tools available to help investors conduct background searches on their investment professionals and make informed decisions."

SEC Investor Advocate Rick Fleming said that investors should dig through adviser profiles before hiring them. "We want to make it as easy as possible for people to have access to that kind of important information," Mr. Fleming said on the sidelines of the IAC meeting.

Mr. Clayton, who took the helm of the SEC in May, reiterated what he told lawmakers during his confirmation hearing: He will emphasize enforcement.

"[D]etecting and punishing fraud, particularly against retail investors, is a high priority for me," Mr. Clayton said. "I am also working with the staff on initiatives to educate investors on ways in which they can prevent themselves from becoming victims of fraud."

Mr. Clayton did not speak to reporters as he left the meeting. His spokesman didn't provide details on the SEC staff work.


What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video


When can advisers expect an SEC fiduciary rule proposal and other regs this year?

Managing editor Christina Nelson and senior reporter Mark Schoeff Jr. discuss regulations of consequence to financial advisers in 2018, and their likely timing.

Recommended Video

Path to growth

Latest news & opinion

Cutting through the red tape of adviser regulation is tricky

Don't expect a simple rollback of rules under the Trump administration in 2018 — instead, regulators are on pace to bolster financial adviser oversight.

Bond investors have more to worry about than a government shutdown

Inflation worries, international rates pushing Treasuries yields higher.

State measures to prevent elder financial abuse gaining steam

A growing number of states are looking to pass rules preventing exploitation of seniors.

Morgan Stanley reports a loss of advisers after exiting the protocol for broker recruiting

The firm said it lost 47 brokers in the fourth quarter, the most in any quarter of 2017.

Morgan Stanley's wealth management fees climb to all-time high

Improvement reflect firm's shift of more clients into fee-based accounts priced on asset levels, which boosts results as markets rise.


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print