11.18.20
Clayton’s Capitol Hill Coda: Democratic Blasts, Republican Praise
by: Mark, Jr. Schoeff
In a Senate Banking Committee hearing Tuesday that's likely to be his last as chair of the SEC, Jay Clayton faced criticism from Democrat lawmakers and mostly praise from Republicans. The panel’s top-ranking Democrat, Sherrod Brown of Ohio, said that one of the agency's signature rules under Clayton's lead, Regulation Best Interest (Reg BI), failed to curb broker conflicts of interest. Later in the hearing, Clayton defended Reg BI, which he maintains is much stronger than the previous suitability standard. Clayton also faced criticism, from Sen. Elizabeth Warren (D-MA), for failing to establish a mandatory uniform reporting standard related to climate threats. While Republicans mostly praised Clayton's efforts, he also took criticism from that side. Sen. Tom Cotton (R-AR) asserted that the agency’s crackdown on inadequate disclosure of 12b-1 fees by investment advisors was regulation by enforcement.
Read the full article on InvestmentNews.