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U.S. Securities and Exchange Commission

SEC News Digest

Issue 2009-177
September 15, 2009


SEC Investor Advisory Committee Forms Subcommittees to Tackle Ambitious Agenda on Behalf of Investors

The Securities and Exchange Commission's newly-formed Investor Advisory Committee today announced that three subcommittees have been formed to address specific categories of regulatory issues as the Committee tackles its wide-ranging agenda. The subcommittees will focus on investor education, investor protection, and shareholder voting and corporate governance.

The SEC's Investor Advisory Committee was formed by SEC Chairman Mary L. Schapiro to give investors a greater voice in the Commission's work. Richard Hisey from AARP Financial and Hye-Won Choi from TIAA-CREF co-chair the Committee in consultation with SEC Commissioner Luis A. Aguilar, who serves as the Committee's sponsor and chief liaison to the Commission.

"The Committee has identified three important and timely broad subject areas to delve into, and the Commission looks forward to receiving its perspectives," said Chairman Schapiro. "Investor views are integral to the SEC's mission, and the work of these subcommittees will greatly inform the SEC's regulatory agenda."

Commissioner Aguilar added, "The Investor Advisory Committee has decided to form three subcommittees focused on key issues of concern to investors. Investors are engaged in the capital markets in many ways, including as purchasers and shareholders, and these subcommittees will assist the Committee to examine and make recommendations on issues across this spectrum. This is critical work and I look forward to seeing the subcommittees in action."

The three subcommittees are:

  • An Investor Education Subcommittee chaired by Dallas Salisbury (President and CEO, Employee Benefit Research Institute) plans to focus on matters related to financial literacy, the efficacy of layered educational resources that may permit investors to access information at varying levels of detail reflecting their needs, the ways that issuers and boards of directors communicate with investors, and the types of technology that can be utilized for education.

  • An Investor as Purchaser Subcommittee chaired by Mercer Bullard (Founder and President of Fund Democracy, Inc. and Associate Professor of Law, University of Mississippi School of Law) expects to examine the needs of investors when they purchase specific products (mutual funds, hedge funds, money market funds) and services (brokerage, investment advisory, and financial planning). This subcommittee also will consider the fiduciary duty owed to investors by those who provide investment advice, as well as issues related to pre-sale and other disclosure, intermediary fees and compensation practices, arbitration, and technology.

  • An Investor as Shareholder Subcommittee chaired by Stephen Davis (Executive Director of Yale School for Management's Millstein Center for Corporate Governance, and board member of Hermes Equity Ownership Service) intends to review proxy solicitation and disclosure issues, proxy voting and process (including the role of proxy advisory firms), majority voting, Regulation FD, executive compensation practices, the responsibilities of shareholders, international issues, and technology related to shareholder communications and voting.

The SEC's Investor Advisory Committee plans to hold its next meeting in early October.

A new Web page with more information about the work of the SEC's Investor Advisory Committee is available at: http://www.sec.gov/spotlight/
(Press Rel. 2009-197)


Immediate Effectiveness of Proposed Rule Change

A proposed rule change filed by New York Stock Exchange extending until September 15, 2009, the operation of Interim NYSE Rule 128 which permits the Exchange to cancel or adjust clearly erroneous executions if they arise out of the use or operation of any quotation, execution or communication system owned or operated by the Exchange, including those executions that occur in the event of a system disruption or system malfunction, (SR-NYSE-2009-93) has become effective pursuant to Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of September 14. (Rel. 34-60649)

Proposed Rule Changes

NASDAQ OMX BX filed a proposed rule change (SR-BX-2009-055) under Section 19(b)(1) of the Securities Exchange Act of 1934 to apply retroactively a correction of an error in Rule 7018. Publication is expected in the Federal Register during the week of September 14. (Rel. 34-60634)

The New York Stock Exchange filed a proposed rule change (SR-NYSE-2009-89) as modified by Amendment No. 1 under Section 19(b)(1) of the Securities Exchange Act of 1934 to amend certain corporate governance requirements. Publication is expected in the Federal Register during the week of September 14. (Rel. 34-60653)

International Securities Exchange filed a proposed rule change under Rule 19b-4 (SR-ISE-2009-64) relating to historical ISE open/close trade profile fees. Publication is expected in the Federal Register during the week of September 14. (Rel. 34-60654)





Modified: 09/15/2009