Mary Jo White, Chair of the Securities and Exchange Commission, discussed her priorities regarding the SEC’s oversight of the registered asset management industry during comments delivered before a conference sponsored by The New York Times at the newly opened One World Trade Center tower in New York City last week. These priorities include addressing regulated funds’ portfolio composition and operational risks. According to Ms. White, portfolio composition risk derives from the makeup of a fund’s investments and “the impact that mix, including the interaction of particular financial instruments, can have on a fund.” The liquidity and leverage of a fund’s holdings are part of this risk, said Ms. White. Operational risks come about from “inadequate or failed internal processes and systems,” she said. Ms. White said the SEC must enhance the “data and other information” it requires to assess these risks; ensure that registered funds augment “their fund-level controls” so they may better assess and address portfolio composition risks; and require firms have plans for dealing with their clients’ assets when there is a "major disruption to their business."