Christopher Cox, SEC Chairman, focused his comments on the need to incorporate electronic filing and interactive data sharing practices across the industry. “I truly believe interactive data provides a reporting revolution,” said Cox. “That is why I am here this morning to encourage each of you and each of your firms to participate.” According to Cox, if this change were to be made, errors often encountered at data sharing centers could be eliminated.
In keeping with the theme of change, Robert Greifeld, NASDAQ President and Chief Executive Officer, addressed the issue of developing markets around the globe. Specifically, Greifeld addressed the notion that the U.S. should consider exporting its investment system to other countries. “We have the most efficient market on the planet,” he said. “Our market model gives a more efficient trading platform for investors.” With 76 million baby bombers slated for retirement beginning in five years, James Gorman, SIA’s recently elected Chairman, reiterated the pressing need for change in retirement saving plans. “With each passing year, time becomes less of an ally, and more of an enemy,” said Gorman in his first address to the industry as SIA’s Chairman. “With each passing year, there is a diminished ability for compounding interest and the reinvestment of dividends and capital gains to work their magic on behalf of American families.”
In pressing the urgency of this matter to audience members, Gorman offered ideas for change on the retirement front, including the simplification of savings vehicles. “Simplify the welter of disparate savings vehicles by consolidating them into a single account, and make it universally available to all Americans,” he said. “This would reduce complexity, encourage personal saving, and enhance retirement security.”
Ellyn McClogan, Fidelity Investments President and SIA Vice Chairman, continued pressing for change on the retirement issue. According to McClogan, the entire industry will begin to change as we approach the threshold of baby boomer retirement approaches. “Everything we think we know about our business will change: the products we sell, the way we interact with customers, how we use technology, the advice we offer, even the way we get paid,” said McClogan. “You name it….everything will change.”
McClogan urged audience members to press their firms to address the changes that will be occurring. “Those firms that recognize the changes that are coming and move quickly to adapt their service model to the new reality will be well-positioned to ride the wave,” she said. “While those that don’t may find themselves in rough surf or adrift at sea.”
