Minutes of the Meeting on December 8, 2016

The Investor Advisory Committee (IAC) met on December 8, 2016, in a public meeting at the Securities and Exchange Commission’s headquarters in Washington, D.C.  The meeting convened at 10:05 a.m. and was broadcast live by webcast. 

The following persons participated in the meeting:

Commissioners of the Securities and Exchange Commission

Chair Mary Jo White (morning only)
Commissioner Kara Stein (morning only)
Commissioner Michael Piwowar (morning only)

Advisory Committee Members[1]

Kurt Schacht, Chairman
Anne Sheehan, Vice Chairman (by phone)
John Coates
Rick Fleming
Matthew Furman
Craig Goettsch
Stephen Holmes
William D. Lee
Barbara Roper (by phone)
Anne Simpson

MORNING SESSION

Opening Remarks

Chairman Kurt Schacht opened the meeting by welcoming Anne Simpson as its newest member. Chair White and Commissioners Piwowar and Stein also welcomed her and wished Joseph Carcello a speedy recovery. Chair White began her opening statement with a summary of recent Commission rulemaking. The outgoing chair, in her last appearance in that capacity before the Committee, went on to highlight core reforms that the Commission has implemented since the financial crisis. She warned that it would be a grave mistake to weaken, let alone dismantle, them.

Commissioners Piwowar and Stein followed with their opening remarks, commenting on the agenda topics and observing that the Committee served as an important asset for the Commission.

Approval of the Minutes of the Meeting on July 14, 2016

Following a motion that was proposed and seconded, the Committee voted to approve the minutes of its public meeting on July 14, 2016.

Discussion Regarding Investor Protection Priorities for the New Year

Mr. Schacht introduced the topic and the four panelists, who spoke in the following order:

• Ken Bertsch, Executive Director, Council of Institutional Investors
• Joseph Brady, Executive Director, NASAA
• Marcus Stanley, Policy Director, Americans for Financial Reform
• David Blass, General Counsel, Investment Company Institute

The panelists delivered opening remarks, describing top issues for their respective organizations and describing what they considered to be the top investor priorities for the year. A discussion ensued among speakers and Committee members. In response to a question from Mr. Schacht, the speakers concluded the discussion by naming their most important concern or theme for investor protection in 2017.

RECESS

The Committee went into recess shortly before 12 noon for lunch and non-public subcommittee meetings.

AFTERNOON SESSION

The public meeting resumed shortly after 1:30 p.m.

Report on Election of Two Officers

Mr. Schacht opened the afternoon session by announcing the results of the election of two open officer positions during the lunchtime administrative session. He reported that the Committee had voted to elect Craig Goettsch as Secretary and Nancy LeaMond as Assistant Secretary. Both had run unopposed.

Update on the Commission’s Response to the Rulemaking Mandate of the Fixing America’s Surface Transportation (FAST) Act Concerning Public Company Disclosure Requirements

• Keith Higgins, Director, SEC Division of Corporation Finance
• Erik Bradbury, Professional Accounting Fellow, Financial Executives International (FEI)
• Jack Ciesielski, President, R.G. Associates

Director Higgins summarized three years of work of the Division of Corporation Finance to review disclosure requirements comprehensively and assess how to make them more effective for investors and issuers. He placed the Congressionally-mandated FAST Act Report in the context of the overall project and earlier releases on disclosure effectiveness. Mr. Higgins also noted the letter that the Division of Corporation Finance had received from the Committee’s Investor as Owner Subcommittee on the FAST Act Report.

Mr. Bradbury, referring to the views of FEI members, described the preparers’ perspective on ways to improve disclosures. Mr. Ciesielski, referring to his own work and that of his subscribers, offered the perspective of a user of financial statements. A discussion with Committee members followed.

CLOSING

 Mr. Schacht adjourned the meeting at 2:47 p.m.