Clayton to leave SEC at Year End; Testifies before Congress

SEC Chairman Jay Clayton confirmed that after serving for more than three and a half years, he will conclude his tenure at the end of this year.  Clayton was sworn in on May 4, 2017, and will leave the SEC as one of its longest serving chairs. The SEC said in a release that Clayton  focused his tenure on advancing the interests of Main Street investors through initiatives that promoted economic growth, investment opportunity, market integrity and investor protection and enhancing the ability of businesses to raise capital in the public and private markets, subject to strong and effective investor protections. “Working alongside the incredibly talented and driven women and men of the SEC has been the highlight of my career,” said Clayton.  “I am proud of our collective efforts to advance each part of the SEC’s tripartite mission, always with an eye on the interests of our Main Street investors. The U.S. capital markets ecosystem is the strongest and most nimble in the world, and thanks to the hard work of the diverse and inclusive SEC team, we have improved investor protections, promoted capital formation for small and larger businesses, and enabled our markets to function more transparently and efficiently.” According to media reports, former Commissioners Kara Stein and Robert Jackson are among names considered for the chairman slot. Clayton in recent testimony before Congress described the SEC’s response to the pandemic, regulatory and policy initiatives, enforcement and compliance, among other topics. Lawmakers criticized Clayton on climate initiatives, noting that companies are not required to report on their climate related risk. Senator Elizabeth Warren charged that Clayton has not pressed for a uniform standard for reporting on climate risk so that investors can compare companies head-to-head. Clayton responded that “what people want is decision-useful information” when it comes to corporate disclosures, as reported in P&I news.