House subcommittee examines activities of the SEC’s Division of Investment Management

The House Subcommittee on Capital Markets, Securities, and Investments examined the operations of the Securities and Exchange Commission’s Division of Investment Management to ensure it is meeting its mission.

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The mission of the SEC’s Division of Investment Management is to protect investors, maintain efficient markets, and facilitate capital formation. Any rules or legislation should reflect these aims.

“Hardworking families in West Michigan and across the nation rely on the capital markets to save for each stage of life. Whether it is saving for college, homeownership, or retirement, the capital markets play an integral role at each milestone. In order to help more Americans achieve financial security in the future, we must continually improve our capital markets so they are as efficient as possible,” Subcommittee Chairman Rep. Bill Huizenga (R-MI) said. “While we have a 21st-century financial marketplace, we’re operating under a 20th-century regulatory structure. I am encouraged by the work and priorities of the SEC’s Division of Investment Management, and I look forward to hearing more about how we can work together to improve the lives of American taxpayers.”

Dalia Blass, director of the Division of Investment Management at the SEC, said the division could help markets continue to grow and develop for the benefit of all investors.

“Modernizing our regulatory framework and engagement with market participants begins with looking back at existing policies and approaches and assessing whether they are (or remain) efficient, effective, and appropriate,” Blass said. “Current policies may not be doing what they were originally intended to do, may not take into account advancements in technology, business, and investor relationships, or may have unintended consequences and costs. In order to be as dynamic and responsive as the markets we regulate, the Division is undertaking several initiatives to modernize our regulatory approach under the Investment Company Act and Investment Advisers Act in light of significant developments in the asset management industry.”