Yesterday, the Securities and Exchange Commission and the Commodities Futures Trading Commission announced the formation of a joint committee to advise the agencies on emerging regulatory issues. This joint committee, the CFTC-SEC Advisory Committee on Emerging Regulatory Issues, will focus on recent market volatility initially, however its charter provides for broad scope of interests. Specifically, the Joint Committee will be charged with identifying of emerging regulatory risks, assessing and quantifying of the impact of such risks and their implications for investors and market participants, and furthering the SEC's and CFTC's efforts on regulatory harmonization.
SEC Chairman Mary Schapiro and CFTC Chairman Gary Gensler will serve as co-chairs of the Joint Committee. The following additional members have been announced, although more are expected to join in the near future:
- Brooksley Born, former Chair, CFTC and current member of the Financial Crisis Inquiry Commission
- Jack Brennan, former Chief Executive Officer and Chairman, Vanguard
- Robert Engle, Michael Armellino Professor of Finance, NYU Stern School of Business
- Richard Ketchum, Chairman and Chief Executive Officer, FINRA
- Maureen O’Hara, Professor of Management, Professor of Finance, Cornell University
- Susan Phillips, Dean and Professor of Finance, The George Washington University School of Business
- David Ruder, former Chair, SEC
In an effort to orient the Joint Committee’s work, on Monday, May 17, the staffs of the SEC and CFTC will provide to the Joint Committee their preliminary findings regarding last Thursday's market events. In addition, the SEC announced that it will hold on Monday a meeting of its Investor Advisory Committee covering a number of issues, including an update on certain issues involved in financial reform legislation and discussion of fiduciary duty, in the context of investment advisers and registered broker-dealers.