On Monday, April 9, 2012, the SEC announced that it had formed the new Investor Advisory Committee and identified the 21 members who will serve on that Committee. The new Committee, mandated by Section 911 of the Dodd-Frank Act, replaces a prior Investor Advisory Committee. The Commission described the Committee as being "made up of individuals with a broad range of backgrounds and experiences."
The SEC had previously established an Investment Advisory Committee in June 2009 under the Federal Advisory Committee Act. However, that committee was terminated in November 2010, with the intention that it would be quickly re-constituted to meet the Commission’s statutory obligation under the Dodd-Frank Act. In September 2011, the SEC stated that a new Committee would be formed. As discussed here, Commissioner Luis Aguilar called the Investment Advisory Committee "essential" and noted that "[i]n the current environment, revelations of egregious fraudulent conduct and recent market conditions continue to demonstrate the vulnerability of investors." In September, he was "disappointed that the Investor Advisory Committee has not been re-established," and urged that it be done "immediately."
Commissioner Aguilar's wish was granted on Monday. The SEC's Press Release stated that the new committee was formed 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. The Dodd-Frank Act authorizes the committee to submit findings and recommendations for review and consideration by the Commission.
The members were nominated by all five sitting Commissioners and will "represent a wide variety of interests, including senior citizens and other individual investors, mutual funds, pension funds, and state securities regulators." It will begin working "in the near future."