Republican SEC Commissioner Piwowar to Leave July 7

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By Andrew Ramonas

SEC Commissioner Michael Piwowar intends to step down this summer, the Republican confirmed in an interview with Bloomberg Law May 7.

Piwowar said he is preparing to depart July 7. His term will end June 5, but Securities and Exchange Commission members can stay on about 18 months after their terms expire. His exit will leave a four-member commission, split evenly between its left- and right-leaning members.

The commissioner said he doesn’t know yet what he will do following his departure. His previous jobs included Republican chief economist on the Senate Banking Committee and assistant professor of finance at Iowa State University before he became a commissioner in August 2013.

“My plans right now are to fulfill my term and figure out what’s next,” he said.

Piwowar told the White House about his intentions in a May 7 letter, in which he also thanked President Donald Trump for making him the SEC’s acting chairman from January to May 2017, between Chairmen Mary Jo White and Jay Clayton. “We accomplished a great deal for the ‘forgotten investor’ in a short period of time,” Piwowar said in the letter.

The commissioner was highly critical of the Dodd-Frank Act, which led to several new SEC regulations for Wall Street in the wake of the 2008 financial crisis. As acting chairman, he moved the commission away from Dodd-Frank rulemaking and ushered in other work, such as adopting a rule to shorten the time frame to settle most trades.

It’s unclear how long the commission may have a four-member commission. Democratic Commissioner Kara Stein’s term ended last June, and she will have to step down in the coming months, unless she is reappointed. The White House hasn’t announced any nominees to succeed Piwowar and Stein.

Representatives for the White House and Stein didn’t immediately respond to a request for comment.

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

To contact the editor responsible for this story: Seth Stern at sstern@bloomberglaw.com

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