SEC Investor Committee to Explore Fiduciary Standards

The Securities and Exchange Commission’s Investor Advisory Committee, which holds its first meeting Monday, has released its agenda for upcoming months.

The first item on the list is fiduciary duties, and whether the various intermediaries that sell mutual funds should be held to the same standards.

Also, the committee will explore whether the information investors currently receive before making an investment decision and after is adequate.

Members will also look into whether technology can be better used to improve the flow of information to and from investors, and whether there should continue to be a distinction between investor information and investor education. Specifically, the committee will look into whether investors appreciate the risks in variable annuity and fixed-income investments. Proxy votes and director-investor communications are also on the agenda.

Perhaps most importantly, the committee will look into whether the SEC has enough resources to adequately protect investors.

Commenting on the upcoming work of the committees, SEC Commissioner Luis A. Aguilar said, “The formation of the committee is a signal of the Commission’s renewed focus on investors, and I am very pleased with the energy that the committee members brought to the discussions.”

SEC Chairman Mary Schapiro added, “The insights that the committee members bring will be extremely important to the commission as we move forward on our investor protection agenda.?