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Division of Investment Management Lists 2013 Accomplishments; Sets 2014 Agenda

Posted in Fund Regulation

The SEC’s Division of Investment Management summarized its activities in 2013, highlighting its intensified rulemaking program, efforts to identify new and emerging risks and its disclosure initiatives. The Division also took the opportunity to discuss its agenda for 2014.

In the March 2014 edition of its Information Update, the Division describes its rulemaking accomplishments in the past year, including proposed rules to reform regulation of money market funds; adoption of final rules implementing the Volcker Rule (along with the federal banking regulators); finalization of rules implementing the JOBS Act mandate to lift the ban on general solicitation and general advertising for certain private offerings; and issuance of guidelines to prevent identity theft.

The Division also noted the publication of its new guidance, and recounted its “enhanced dialog with the industry.”

Looking ahead, the Division said that in 2014 it expects to:

  • possibly adopt new fund disclosure rules;
  • adopt final rules to implement the JOBS Act and the Dodd-Frank Act;
  • finalize money market fund reform rules;
  • determine next steps in the SEC’s investment adviser/broker-dealer initiative; and
  • enhance disclosures about variable annuities

Conspicuously absent from the list of priorities are mention of former front burner topics, including:

  • guidance for valuation of portfolio securities;
  • rule proposals for or guidance on investment company use of derivatives and leverage; and
  • final rules to reform fund distribution (“Rule 12b-2”).

These accomplishments and priorities, viewed in the context of the focus of recent and ongoing general and sweep examinations and resulting referrals to the Enforcement Division, may provide additional clues about staff’s primary areas of focus.