Goldman Sachs Asset Management (GSAM) has hired Andrew “Buddy” Donohue, the former head of the U.S. Securities and Exchange Commission's Division of Investment Management as its deputy general counsel.
Donohue, who most recently was a partner in the New York office of law firm Morgan Lewis & Bockius LLP, will join GSAM on Nov. 1 and report to Ellen Porges, GSAM’s general counsel. Prior to joining the SEC, Donohue was global general counsel for Merrill Lynch Investment Managers, and before that he was general counsel at OppenheimerFunds.
The Division of Investment Management regulates investment companies, such as mutual funds, closed-end funds and exchange-traded funds, and certain insurance products. The division also has oversight of federally registered investment advisers.
Donohue was head of the division at the SEC from May 2006 to November 2010, and spearheaded several key initiatives during his tenure, including the SEC’s failed attempt in 2010 to restrict how much mutual fund companies could charge in 12b-1 fees, which are marketing and servicing fees. The SEC’s proposal was met with vehement opposition from the industry and never passed.
More recently, Donohue led the SEC's ongoing examination of how ETFs use derivatives and had targeted investment advisor “pay-to-play” abuses.
“For most of my career, I’ve been in-house,” said Donohue. “And I’m looking to get back to that and, I also think this is an opportunity that doesn’t come along very often and one where I know I can provide some value to the firm.”
GSAM reports that it holds $702 billion in assets under management.