The Managed Funds Association (MFA) sent a letter to new Securities and Exchange Commission (SEC) Chair Jay Clayton in support of efforts to modernize and simplify the regulatory framework for capital markets and asset managers.
MFA congratulated Clayton his appointment and wrote in the letter that the association looks forward to “continuing a constructive and cooperative relationship with the Commission” under his leadership.
The organization went on to outline that areas that are of most concern to its members, including data security and the treatment of confidential information, systemic risk regulation, private fund systemic risk reporting forms, registration for private fund managers, and equity market structure reforms among other issues.
“MFA members favor smart, effective regulation of securities markets generally, and have a strong interest in thoughtful and efficient regulation of hedge fund managers,” the letter said. “MFA supported many aspects of the Dodd-Frank Wall Street Reform and Consumer Protection Act. In particular, MFA has consistently supported the provision of the Dodd-Frank Act requiring the registration of private fund managers with the SEC as investment advisers under the Investment Advisers Act of 1940.”
It said the existing framework of SEC regulation of private fund managers has worked well and is effective in fulfilling the SEC’s mission to protect investors, maintain fair, orderly and efficient markets and facilitate capital formation.
“At the same time, MFA also supports efforts to modernize and simplify the regulatory framework for capital markets and asset managers towards the goals of enhancing investment activity, capital formation and economic growth,” the letter said. “In particular, we have taken note of the recent Presidential Executive Orders designed to reduce regulation, control regulatory costs, and establish core principles for regulating the financial system. We support these goals and believe they can be achieved through a sensible approach to regulatory modernization that protects investors, enhances regulatory coordination, promotes market transparency and increases market fairness and efficiency.”