The SEC Office of the Investor Advocate ("OIA") communicated its FY2021 priorities for protecting and promoting the interests of retail investors. The publication of the annual report is required under SEA Section 4(g)(6).
Among its objectives, the OIA highlighted the following:
- Corporate Disclosure: The OIA is considering a "single principles-based" disclosure requirement in response to requests for improved disclosure on human capital management.
- The Proxy Process and Other Proxy Issues: The OIA will focus on improving the process of voting on and counting shares (a/k/a "proxy plumbing").
- Equity Market Structure: The OIA will continue working on several market-related initiatives, including (i) a pilot program for thinly traded securities, (ii) updating rules governing transfer agents, and (iii) implementing the SEC Consolidated Audit Trail ("CAT").
- Novel Exchange-Traded Funds: The OIA will engage with the SEC to ensure that newly implemented exchange-traded fund developments include appropriate investor safeguards and strict enforcement.
- Fund Disclosure: The OIA will continue to examine the effectiveness of disclosures by SEC-registered funds. The OIA will also study investor behavior by using surveys and focus groups.
- Broker Misconduct: The OIA will monitor implementation of Regulation Best Interest as a resource to prevent abusive and unethical broker-dealer misconduct.
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