Allison Herren Lee announced March 15 that she intends to step down once her successor has been confirmed. Lee’s term as commissioner expires in June, but she could continue serving for an additional 18 months if a new commissioner has not been confirmed.
“Serving investors and the public as a Commissioner and as Acting Chair has been an extraordinary honor. My fellow Commissioners and the Commission staff are dedicated and tireless public servants, and working alongside them has been the privilege of a lifetime,” Lee said in a statement.
Lee was appointed by President Trump and sworn in as Commissioner in July 2019 to serve out the remainder of a five-year term that expires June 5, 2022, for the Democrat-aligned seat that was vacated by former Commissioner Kara Stein.
Following President Biden’s swearing-in, he named Lee to serve as acting chair of the agency before Gary Gensler was confirmed to the position. She replaced Commissioner Elad Roisman, who had been named acting chair by President Trump following former Chair Jay Clayton’s departure.
Roisman, a Republican-aligned commissioner, left the SEC in January, but President Biden has not yet named a new nominee. Whomever he nominates would generally have to be aligned with and have the support of the Republican party.
Thus, President Biden will soon have to nominate two new commissioners to bring the commission back to full capacity. The SEC has five commissioners who are appointed by the President and subject to confirmation by the U.S. Senate. To ensure that the it remains non-partisan, no more than three commissioners may belong to the same political party. Gensler, Lee and Caroline Crenshaw currently comprise the Democrat-aligned commissioners, while Commissioner Hester Peirce currently serves as the lone Republican.
Lee’s Climate Focus
Lee, who noted that she plans to remain actively engaged until her spot is filled, has focused on climate and sustainability issues during her time as commissioner. In March 2021 as then-acting chair, she requested public feedback on how the Commission can best regulate and guide climate change disclosures—an issue that was supported by the American Retirement Association. Lee also directed the SEC’s Division of Corporation Finance in February 2021 to evaluate the climate-related disclosure rules in public company filings. In fact, the Commission next week plans to consider enhanced climate-related disclosures for investors on March 21.
“I have been fortunate to rely on Allison’s expertise throughout my time at the SEC on matters as wide-ranging as agency administration, enforcement, and policy issues,” SEC Chair Gary Gensler said in a statement. “She always maintains a clear sense of purpose on behalf of the American public, and we have benefited greatly from her service.”
Prior to serving as Commissioner, Lee served on the staff of the SEC for more than a decade in various roles, including as counsel to Stein and as Senior Counsel in the Division of Enforcement’s Complex Financial Instruments Unit. In addition, she has served as a Special Assistant U.S. Attorney and was a member of the American Bar Association’s former Committee on Public Company Disclosure. Prior to government service, Lee was a partner at the Denver law firm of Sherman & Howard LLC, focusing on securities, antitrust and commercial litigation.
