ASA Outlines Priorities for Future of SEC’s Investor Advisory Committee

WASHINGTON – The American Securities Association (ASA) today sent a letter to Securities and Exchange Commission (SEC) Commissioners Peirce and Uyeda outlining priorities for the future of the Investor Advisory Committee (IAC) ahead of its December 10th meeting.

“Because of the way the IAC has conducted itself over past four years, the public does not have a clear idea of how particular items end up on the IAC’s agenda or how policy recommendations are developed,” ASA President and CEO Chris Iacovella wrote in the letter. “We strongly believe this must change and that new members with different perspectives are given a seat at the table. The IAC should embody the same level of openness, impartiality, and professionalism that the Investor Advocate has consistently demonstrated.”  

In its letter, ASA urged the IAC to instead prioritize the following points:

• Ensure that any IAC recommendations considered by the SEC reflect the full mandate of the SEC to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation;

• Diversify the IAC membership to include members with diverse perspectives and real-world professional experience who understand the capital raising process;

• Ensure that any recommendations considered by the SEC are grounded in law and do not overstep the bounds of the SEC's authority. (the IAC must not recommend policies that are clearly outside the scope of the SEC’s authority);

• Increase transparency in the selection process for IAC members;

• Adopt measures to prevent the IAC from being used as a vehicle for advancing political agendas;

• Refocus the IAC's efforts on investor education and protection, rather than policy advocacy

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The American Securities Association (ASA) represents the retail and institutional capital markets interests of regional financial services firms who provide Main Street businesses with access to capital and advise hardworking Americans how to create and preserve wealth. ASA’s mission is to promote trust and confidence among investors, facilitate capital formation, and support efficient and competitively balanced capital markets. This mission advances financial independence, stimulates job creation, and increases prosperity. The ASA has a geographically diverse membership of almost one hundred members that spans the Heartland, Southwest, Southeast, Atlantic, and Pacific Northwest regions of the United States.