New SEC Commissioner Elad Roisman - whose nomination was confirmed by the Senate last week - was sworn in yesterday, returning the Commission to its full complement of five members. However, as previously reported, Democratic Commissioner Stein's term expired June 5th of last year. While the Chair and Commissioners may (and commonly do) serve up to 18 months beyond the expiration of their terms if not sooner replaced, unless a Stein successor is confirmed by December, the Commission will once again be short-staffed. We noted in early August that Sen. Schumer [D-NY]-recommended Allison Lee was floated as a possible successor to Commissioner Stein, but we've heard nothing further on that potential nomination.
Investment News reports:
[Republican Elad Roisman's Senate confirmation] was an odd occurrence because SEC vacancies are usually filled in tandem, with the Senate approving a Republican and a Democrat. Democratic SEC member Kara Stein, whose term ended last year, has to depart by the end of the current Congress in December. Mr. Roisman traveled alone because Senate Democrats had trouble settling on their own nominee. Finally, Allison Lee, a former SEC enforcement official, was forwarded to the White House, according to published reports. The Trump administration has not acted, while the legislative calendar winds down quickly in advance of November's midterm elections. The confirmation process usually takes months.
"I'm one of many people who simply does not know why the nomination hasn't been announced," said Neil Simon, vice president for government relations at the Investment Adviser Association.
See our prior reports: "SEC: Elad Roisman Nomination Clears Senate Banking," "Senate Banking Holds Hearing on SEC Commissioner Candidate Elad Roisman," and "SEC: Trump Nominates Elad Roisman to Succeed Commissioner Piwowar." This post first appeared in this week's Society Alert!