Investment Company Institute

Investment Company Institute

Formation	1940
Purpose	Investment regulation and education
Location	Washington, DC
Chairman	William McNabb
Vice Chairman	Gregory E. Johnson
President and CEO	Paul Schott Stevens
Main organ	Board of governors
Website	www.ici.org
Formerly called	National Association of Investment Companies

The Investment Company Institute (ICI) is the national association of U.S. investment companies of mutual funds, exchange-traded funds, closed-end funds and unit investment trusts. ICI encourages adherence to high ethical standards, promotes public financial literacy of funds and investing, and advances the interests of investment funds and their shareholders, directors, and advisers.

History

Following the stock market crash of 1929 that presaged the Great Depression, Congress passed a series of acts related to securities and financial regulation.^[1] One of these, the Investment Company Act of 1940, clearly defined the responsibilities of investment companies.^[2] This same year, what would become ICI was established in New York as the National Committee of Investment Companies, an organization to aid in the administration of the act.^[3] It became the National Association of Investment Companies (NAIC) in 1941, and then the Investment Company Institute in 1961.^[4]

ICI Global

In 2011, ICI expanded internationally with the launch of the London-based ICI Global, which seeks to advance the common interests and promote public understanding of issues related to international funds, managers and investors, including both regulated U.S. and non-U.S. based funds publicly offered to investors worldwide..^[5] In 2013, ICI Global expanded into Asian markets with the opening of an office in Hong Kong.^[6]

Role in regulation and education

As an association made up of U.S. investment companies, including mutual funds, closed-end funds, exchange-traded funds (ETFs), and unit investment trusts (UITs), ICI seeks to encourage adherence to high ethical standards among its members to gain public trust and confidence.^[7][8][9] It advocates for meaningful disclosure for investors from funds and provides investor education.^[10][11] It also provides data and commentary to the SEC to advise its regulatory process, and submits official comment letters and briefs in response to proposals around new financial regulations as well as legal decisions.^[12][13]

ICI’s research department includes economists and research analysts who collect and disseminate data on all types of registered investment companies; in 2012 they released more than 160 statistical reports examining various aspects of the industry.^[14] In addition, ICI aims to promote the interests of directors, stockholders and investment counselors as well as the investment funds themselves.^[15] The organization has two continuing professional education programs, including a Continuing Professional Education (CPE) program for Certified Public Accountants and a Continuing Legal Education (CLE) program for attorneys.^[16][17]

Political role

ICI lobbies on behalf of investment companies, working closely with policymakers and regulators through outreach efforts involving economic and legal analysis, sometimes advocating directly to the public on issues important to its members. It also donates to federal candidates through its political action committee, ICI PAC, having donated $1,618,132 for the 2012 PAC cycle, with 38% going to Democrats and 62% to Republicans^[18] In 2012, the ICI spent an additional $5,065,106 on lobbying.^[19]

Membership

ICI membership is open to Securities and Exchange Commission-registered investment companies (mutual funds, closed-end funds, ETFs, and UITs), their investment advisers, and underwriters.^[20] As of June 2012, ICI membership included 8,787 mutual funds, 641 closed-end funds, 987 exchange-traded funds (ETFs), and as of December 2012, 4,049 unit investment trust (UITs) by two UIT sponsors.^[21] Members manage assets totaling $14.7 trillion and serve almost 94 million shareholders.^[22] As of December 31, 2012, ICI Global membership consisted of 31 companies.^[23]

Leadership

The ICI is run by a board of governors, responsible for setting policies and overseeing the activities of the organization.^[24] The organization’s staff is based in its offices in Washington, DC, London, and Hong Kong.^[25]

• William McNabb, Chairman - McNabb is also CEO of The Vanguard Group.^[26]
• Gregory E. Johnson, Vice Chairman - The former chairman, having served from 2011-2013, Johnson is also the president and CEO of Franklin Resources.^[27][28]
• Paul Schott Stevens, President and CEO - Stevens has been President and CEO of ICI since 2004, and served as the Institute's General Counsel from 1993-97. He also is a director of the ICI Mutual Insurance Company.^[29]
• Peter H. Gallary, Chief Operating Officer - Gallary was named COO in 2006, after serving as chief executive of The Boston Company Advisors, as well as the head of operations and a managing director at Putnam Investments.^[30]
• Donald C. Auerbach, Chief Government Affairs Officer & Co-Head of Government Affairs - A former member of the staff of Rep. Carolyn B. Maloney (D-NY), he joined ICI in 2004. Auerbach was named a leader of its government affairs staff in 2009.^[31]
• Kathleen C. Joaquin, Chief Industry Operations Officer - Joaquin was named to her current position in 2012, previously having served with ICI as the director of operations and distribution.^[32]
• Amy B. R. Lancellotta, Managing Director, Independent Directors Council - Before assuming this role in 2006, Lancelotta served for seventeen years as a member of ICI's law department, most recently as a senior counsel.^[33]
• Karrie McMillan, General Counsel - McMillan joined ICI in 2007, having served as a partner at Willkie Farr & Gallagher LLP and Shearman & Sterling LLP, and in the SEC’s division of investment management.^[34]
• Mike McNamee, Chief Public Communications Officer - Named to his current position in 2012, McNamee first joined ICI in 2006, after serving as Deputy Washington Bureau Chief at BusinessWeek.^[35]
• Brian Reid, Chief Economist - Reid joined ICI in 1996 and was appointed chief economist in 2004.^[36]
• Dean R. Sackett III, Chief Government Affairs Officer & Co-Head of Government Affairs - Sackett joined ICI in 2000 and was appointed to his current role in 2009. He previously served on the staff of Rep. Bob Livingston (R-LA).^[37]
• Dan Waters, Managing Director, ICI Global - Waters assumed the role in 2011, having previously directed asset management policy at the United Kingdom's Financial Services Authority.^[38]

References

External links

• Investment Company Institute website
• Investment Company Institute at SourceWatch