On September 16, the Securities and Exchange Commission announced the establishment of the Division of Risk, Strategy, and Financial Innovation. SEC Chairman Mary Schapiro also announced that University of Texas School of Law Professor Henry T.C. Hu will serve as the first director of the newly created division.
The Division of Risk, Strategy, and Financial Innovation combines the Office of Economic Analysis (OEA) and the Office of Risk Assessment (ORA) and will have three broad responsibilities: risk and economic analysis, strategic research and financial innovation. The new division will perform all of the functions previously performed by the OEA and ORA as well as the following: (i) strategic and long-term analysis; (ii) identifying new developments and trends in financial markets and systemic risk; (iii) making recommendations as to how these new developments and trends affect the SEC’s regulatory activities; (iv) conducting research and analysis in furtherance and support of the functions of the SEC and its divisions and offices; and (v) providing training on new developments and trends and other matters.
According to Chairman Schapiro, this new division will provide integrated economic, legal and financial analysis in an effort to “enhance [the SEC’s] capabilities and help identify developing risks and trends in the financial markets.”
To read the full text of the SEC’s press release, click here.