As part of the Dodd-Frank Act, the SEC is forming a new investor advisory committee designed to submit recommendations to the commission having to do with almost all of its oversight functions. It will particularly be a watchdog for divergent issues of importance between institutional and retail investors.
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Such issues might include the appropriateness of target-date funds and the issue of frequent trading. Whether the fiduciary definition debate will be under the committee’s radar is not certain. Regulatory debate continues around how much regulation can be imposed without disrupting market forces and how much regulation should be governed by rules and how much should be conceptual.