April 11, 2012
SEC Reconvenes Investor Advisory Committee
by Robert Kropp
The Committee, which was formed in 2009 and terminated after passage of the Dodd-Frank bill, again
includes representatives of the sustainable investment industry.
The Securities and Exchange Commission (SEC) originally created an Investor Advisory Committee in
the aftermath of the financial crisis. Included among the priorities of the members of the
committee was "a push for mandatory reporting," as Adam Kanzer, Managing Director and General
Counsel of Domini Social Investments, told
SocialFunds.com in 2009. "Things have been changing globally during the last ten years, and
governments have stepped in to mandate environmental, social, and governance (ESG) reporting."
The original Investor Advisory Committee was terminated in 2010, after passage of the
Dodd-Frank financial reform bill "established the new committee to advise the Commission on
regulatory priorities, the regulation of securities products, trading strategies, fee structures,
the effectiveness of disclosure, and on initiatives to protect investor interests and to promote
investor confidence and the integrity of the securities marketplace," according to the SEC.
On Monday, the SEC announced the formation of the new Investor Advisory Committee. Kanzer and
Hobson are again among its 21 members, as are Anne Sheehan of CalSTRS, Joseph Dear of CalPERS, and
Ann Yerger of the Council of Institutional Investors
The committee "will begin its work in the near future," the SEC stated. While
it may be too early to tell if the committee will build upon the framework of its predecessor, the
original committee featured such potentially constructive accomplishments as the formation of an
Investor as Shareholder Subcommittee.
Chaired by Stephen Davis of Yale School for
Management's Millstein Center for Corporate Governance, the subcommittee intended to address
several issues of concern to sustainable investors, including corporate disclosure, a majority
voting standard, and the role of proxy advisory firms.