The Investment Adviser Association (IAA) has sent new SEC Chairman Paul Atkins a list of its key policy priorities and recommendations, starting with a call for a “flexible principles-based approach to regulations.”
Atkins was sworn in as SEC chairman on April 21 after being nominated by President Donald Trump on Jan. 20 and confirmed by the Senate on April 9.
IAA President and CEO of the Karen L. Barr told Rethinking65 in March that the IAA was dissatisfied with the policies of Atkins’ predecessor, Gary Gensler, who, she said, adopted a “prescriptive approach” with “check-the-box-type” regulations that were applied to all firms, large and small. She said at the time that Atkins’ outlook is more in line with IAA priorities.
The IAA said in a letter to Atkins that the SEC should tailor its practices to the diverse range of adviser business models, with an emphasis on the needs of small businesses.
IAA General Counsel and Head of Public Policy Gail Bernstein noted in a news release that 92% of advisers are small businesses with 100 or fewer employees. Bernstein also pointed out that the SEC has a key role in overseeing almost 16,000 registered investment advisers who manage more than $144 trillion in assets for more than 68 million investors.
“The IAA congratulates Paul Atkins on his appointment as SEC Chairman and welcome him back to the agency.” Barr said in the release. “We look forward to working with the Chairman and his staff on the many crucial issues facing our members, their clients, and the markets. We stand ready to collaborate with the SEC in developing a regulatory environment that is fair, principles-based, and focused on protecting investors while fostering innovation and economic growth.”
In her March interview with Rethinking65, Barr said IAA was also lobbying other federal officials and members of Congress on its priorities.
The IAA presented Atkins with a request for several actions:
Extend deadlines for compliance and provide relief for recently adopted rules targeting money laundering and amendments to Regulation S-P
Adopt policies to facilitate electronic delivery of mandatory disclosures
Issue further guidance on the Marketing Rule
Expand investor access to a broader array of investment opportunities, which would promote capital formation
Revise the Custody Rule and Pay-to-Play Rule in a practical, principles-based manner
IAA also requested changes to SEC processes, including:
Use comprehensive cost-benefit analyses during rulemaking that weighs the economic costs and the compliance challenges for advisers, both in isolation and cumulatively
Promote proactive collaboration with compliance officers
Tailor regulatory practices to firm size and business model
Focus enforcement on misconduct that causes investor harm
Engage with industry stakeholders before proposing rules or issuing guidance
