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FYI: Themes Currently Guiding SEC Division of Investment Management

FYI: In a speech to the ICI this week, the Director of the SEC’s Division of Investment Management outlined themes that are currently guiding the work of the Division, among them:

— Improving the investor experience. This includes not only the on-going effort to improve the quality and usefulness of disclosure, but also how to facilitate modernizing the content, design and delivery of information provided to investors.

— Modernizing key areas of the fund regulatory framework. One area specifically mentioned was the regulation of funds using derivatives. From the Director’s remarks, it is clear that the dialog about how to approach derivatives regulation is far from over, and that the Staff is still working on a re-proposal of the derivatives rules proposed (in a 421-page release) in 2015.

— Seeking to leverage SEC Staff resources efficiently. This includes continuing to use Staff guidance (FAQs, no-action letters and the like) to address issues when appropriate.

In addition to these principles, the Director emphasized their belief that outcomes improve with understanding and that they therefore start each project with engagement — with investors, Commissioners, lawmakers, industry participants, investor advocates and anyone else who would like to share their views and experiences.

Full speech: https://www.sec.gov/news/speech/speech-blass-102518.

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