SEC Announces Donohue Departure

Andrew J. "Buddy" Donohue plans to leave the Securities and Exchange Commission (SEC) in November after serving more than four years as its Director of the Division of Investment Management.

An SEC news release said Donohue helped develop significant regulations governing the $39-trillion asset management industry, including rules to improve oversight of money market funds, increase investment adviser custody controls, and curtail investment adviser “pay-to-play” abuses.

Under his leadership, the announcement said, the SEC also implemented a new mutual fund summary prospectus and investment adviser disclosure brochure, and proposed to replace rule 12b-1 mutual fund distribution fees with a reformed regulatory framework. The agency also recently proposed rule amendments to improve information in target date fund advertisements and marketing.

“Buddy has been an effective leader and investor advocate during his tenure at the Commission. His vast knowledge of mutual funds and the investment advisory landscape has been invaluable in advancing several vital regulatory initiatives,” said SEC Chairman Mary L. Schapiro, in the announcement.

Donohue, 59, was appointed to lead the Division of Investment Management in April 2006. He came to the SEC from Merrill Lynch Investment Managers, where he served as Global General Counsel and oversaw the firm’s legal and regulatory compliance functions for more than $500 billion in assets including mutual funds, fixed income funds, hedge funds, private equities, and managed futures. He also was Chairman of the firm’s Global Risk Oversight Committee.

Prior to his service at Merrill Lynch Investment Managers, Donohue spent more than a decade as Executive Vice President, General Counsel, Director, and member of the Executive Committee for OppenheimerFunds.