Gensler cites risks where banks and non-banks meet

investmentnews.com:

Gary Gensler is midway through his tenure leading the Securities and Exchange Commission through a shakeup of financial markets and middlemen, and amid historic changes in the players and what’s being traded. The SEC chair has completed just over half of his agenda. Here’s what Gensler has in mind for the rest.

In a Feb. 14 interview, the former Goldman Sachs Group Inc. executive and three-time financial regulator commented on financial stability, private credit and why he’s wary of mixing banks and crypto. Some hefty and contentious rules, notably on corporate climate disclosures and reworking the trading structure of equities, are still pending. Gensler said he’s looking to lower the cut taken by intermediaries in dealings between investors and issuers to make markets more competitive and efficient.

Gensler spoke with a panel of Bloomberg editors and reporters in New York. The interview has been edited for length and clarity. 

Bloomberg: What’s your plan for completing the remaining half of your agenda? 

Gary Gensler: Three years ago, we laid outan agenda that included 55 or 60 proposals. We’ve finalized 35 of them, generally with some moderation from their proposed form.

On the equity markets, there were the four separate proposals from December 2022, and the direction of travel on those is forward. We’re working on each of those. And there was one about volume-based discounts in that market. So on those five, I feel very good about the staff work. 

There are some rules around investment advisers, broker-dealers and something called systems compliance and integrity. And even customer notification, if somebody gets into your brokerage account or gets your private information. That suite of rules, again, the direction