The Senate on Tuesday evening confirmed Jay Clayton as chairman of the Securities and Exchange Commission, and financial services groups wasted little time in urging him to pursue a uniform fiduciary standard.
In a statement following his confirmation, the Financial Services Institute, which primarily represents independent broker-dealers, urged Mr. Clayton to pursue a uniform fiduciary standard rule.
"Adopting a true, uniform fiduciary duty that protects investors and their access to affordable, objective financial advice must finally be given the serious attention it deserves," FSI executive vice president and general counsel David Bellaire said in a statement.
The Financial Services Roundtable also put a uniform fiduciary rule at the top of its wish list for Mr. Clayton.
The Dodd-Frank financial reform law gave the SEC the authority to promulgate an investment-advice rule, which it has yet to exercise. In the meantime, the Department of Labor finalized its own fiduciary rule for retirement accounts last year. That measure has been delayed and
may be modified or repealed by the Trump administration.
Acting SEC Chairman Michael Piwowar recently said that the agency should
"reassert" itself and take the lead on fiduciary-duty policy.
While Mr. Clayton sorts out his regulatory agenda, the normally five-member SEC still has two openings remaining. Mr. Clayton, the Republican Mr. Piwowar and Democratic member Kara Stein currently comprise the panel.
Mr. Clayton's appointment means that for the second consecutive time, an SEC chairman will enter office with
no rulemaking experience. Mr. Clayton is a partner at the prominent Wall Street law firm Sullivan & Cromwell, where he specialized in financial firm mergers and acquisitions and capital markets offerings.
During his Senate confirmation hearing,
Mr. Clayton revealed little about where he stands on regulatory issues affecting retail investment advisers and brokers, including raising investment-advice standards.
Most Democrats opposed Mr. Clayton's nomination. Sen. Elizabeth Warren, D-Mass., said that the SEC would have "weaker enforcement" under Mr. Clayton, who she said would often have to recuse himself from disciplinary actions because of his former Wall Street clients, who included many major financial firms.
"I don't have any faith that Mr. Clayton will be the tough, independent leader we need at the SEC," Ms. Warren said on the Senate floor.
Republicans said that Mr. Clayton's experience in representing the financial industry would benefit him in his new job.
"His extensive work in the private sector will serve him well as he looks to strengthen our financial markets, thereby supporting American businesses, boosting job creation and spurring economic growth," said Senate Majority Leader Mitch McConnell, R-Ky.
