Bloomberg Law
Free Newsletter Sign Up
Bloomberg Law
Welcome
Go
Free Newsletter Sign Up

SEC Republican Roisman Named Acting Chairman, Replacing Clayton (1)

Dec. 24, 2020, 3:02 PMUpdated: Dec. 24, 2020, 4:43 PM

Republican Elad Roisman has been named acting chairman of the Securities and Exchange Commission by President Donald Trump, according to SEC Commissioner Hester Peirce.

Roisman is succeeding Jay Clayton, who stepped down as SEC chairman Wednesday, Peirce, a Republican member of the commission, told Bloomberg Law Thursday. Roisman became an agency commissioner in 2018.

He inherits a commission that has two Democrats and two Republicans, including himself and Peirce. The division effectively gives Democratic Commissioners Allison Lee and Caroline Crenshaw veto power over any significant rulemaking work they don’t support.

Roisman likely will lead the agency until President-elect Joe Biden takes office Jan. 20. Biden is expected to designate his own acting chairman of the SEC at that time. But Roisman can remain on the commission until at least 2023, when his term expires.

SEC Work

Roisman came to the SEC from the Senate Banking Committee, where he was chief counsel under Chairman Mike Crapo (R-Idaho). Roisman consistently voted with Clayton to advance the former chairman’s rulemaking agenda, including helping adopt a broker conflict-of-interest rule and regulations that eased capital raising in private markets.

Clayton named Roisman his point man for the agency’s efforts to update the infrastructure and process behind public company shareholder voting, known as the proxy system. Roisman then spearheaded work that led to new requirements for Institutional Shareholder Services Inc., Glass, Lewis & Co., and other proxy advisory firms that make voting recommendations to pension funds and other institutional investors.

A representative for Roisman didn’t immediately respond to a request for comment.

(Updates with additional background throughout)

To contact the reporter on this story: Andrew Ramonas in Washington at aramonas@bloomberglaw.com

To contact the editor responsible for this story: Roger Yu at ryu@bloomberglaw.com