The SEC likely will bring more enforcement actions against investment firms that pushed mutual funds with higher fees on clients who had cheaper options, a senior agency official said.
The Securities and Exchange Commission’s Share Class Selection Disclosure Initiative has been “phenomenally successful” since it launched in 2018, Steven Peikin, a co-director of the agency’s Enforcement Division, said June 25.
Patomak Senior Advisor Luther Strange opines, “Just as there is no free lunch in life, there’s no free legal support under this NYU scheme. Instead, these lawyers are paid for, and subject to influence by, special interests to pursue specific policy goals.
In fact, under the agreements in question the State AG office must regularly report back to the NYU Center on the activities of the SAAG and must “collaborate” with the Center on public announcements relating to environmental issues the SAAG worked on. This arrangement exposes the heart of the problem. The NYU scheme allows climate activists to carry out their agenda under the authority of state governments, with zero transparency into who is paying for what.”
“A funny thing happened recently in the left-leaning Golden State. In a board election last month, members of the California Public Employees’ Retirement System, or Calpers, the biggest pension fund in the nation, threw out their president and gave ESG investing a bloody nose…
“It’s too early to tell if this election will have ramifications beyond Calpers,” says Paul Atkins, CEO of Patomak Global Partners and a Republican SEC commissioner from 2002 to 2008. “But a lot of funds are already using ESG, and investors don’t know to what extent they are using it.”
The California Public Employees’ Retirement System this month said no thank you to pension-fund activism. Government workers unseated Priya Mathur, the sitting Calpers president. She was defeated by Jason Perez, a police-union official who criticized Ms. Mathur’s focus on environmental, social and governance investing, or ESG. Mr. Perez emphasizes the agency’s fiduciary duty to maximize investor returns.
House lawmakers are drafting legislation to preempt some aspects of state licensing and regulation of the virtual currency industry in a bid to help U.S.-based crypto exchanges and blockchain companies remain competitive in a global market.
“We have 50 states here, and those states have many different people who have interests in securities markets,” Paul Atkins, a former commissioner at the Securities and Exchange Commission who now leads the financial services consulting group Patomak Global Partners LLC, said during a panel.
“Is [the SEC] a merit regulator, or should investors be able to decide for themselves what to invest in?” says Paul Atkins, a former SEC commissioner and now chief executive of Patomak Global Partners, a financial consulting firm. Resolving that debate will take time, he says.
Patomak Senior Adviser Luther Strange opines in RealClearMarkets:
Climate change is a serious issue that impacts every person, deserving a serious public-policy debate through our democratic process… Lawsuits will not develop sound public policy, and they will certainly not halt climate change. And the reality that two federal judges have now dismissed city climate cases should send a strong message to other local leaders: the courts are not the proper place to make climate policy.
Token Alliance co-chairs Paul Atkins and Jim Newsome write in an op/ed in Morning Consult:
The private sector drives innovation; it is one of the best characteristics of the American economy. In contrast, the government operates deliberately and carefully.
That is why we worked with Token Alliance, an initiative of the Chamber of Digital Commerce representing more than 350 blockchain and token experts from around the globe, to develop a comprehensive set of guidelines now to help shape the responsible growth of the token marketplace. The collaborative report is designed to be used as a resource among industry innovators, consumers, and policymakers to address so-called “utility tokens,” an aspect of the token economy fighting to be recognized.
Forbes contributor Aaron Staley writes: “…An overly expansive interpretation and application of the Howey Test could threaten the utility of blockchain technology and could stifle innovation,” states a new report from the Token Alliance, a coalition led by the Chamber of Digital Commerce - the U.S. blockchain and digital asset trade group...
“These industry-developed principles are an important tool for responsible growth and smart regulation that strikes the right balance between protecting investors while allowing for innovation in this new technological frontier,” said Paul Atkins, CEO of Patomak Global Partners and a former SEC commissioner.
Chairman of the Advisory Board for CoinDesk, Michael Casey writes:
“…if digital tokens are to matter and if they are to enable networks of distributed trust, the industry needs to advance to adulthood…
…As such, it is encouraging to see proactive efforts to promote best practices. The latest such effort comes from the Token Alliance, an industry initiative of the Digital Chamber of Commerce that comprises 350 global industry participants, including blockchain and token experts, technologists, economists, former regulators, and practitioners from over 20 law firms.
On Monday, the Alliance will release its first white paper, one that aims to bring two important constituencies – industry leaders and regulators – into alignment around the appropriate business and legal treatment of digital token issuances.
Paul Atkins writes in an opinion piece exclusive to Pensions & Investments:
“Pension funds must invest long-term to meet the anticipated needs of retirees. Every dollar counts, and long-term growth is essential, especially because markets do not always go up. Managing other people's money is not a trivial pursuit — it demands prudence, patience and perception, not political gamesmanship. “
…Former SEC commissioner Paul Atkins, CEO of Patomak Global Partners LLC, a Washington financial consulting firm, said that post-tax reform, companies are supporting economic growth in several ways, such as distributing cash through buybacks to shareholders, including those in and saving for retirement. "Buybacks are a basic function of capital markets that drive reinvestment. Share buybacks benefit those very shareholders, seniors and the broader economy," Mr. Atkins said.
The Securities and Exchange Commission and the Labor Department have both asserted the authority to regulate investment brokers. The two of us—a former SEC commissioner and a former labor solicitor—have a word of advice for Labor concerning its recent efforts to adopt new rules on broker conflicts of interest: It’s time to pass the baton.