SEC taps new chief of investment management unit

WASHINGTON (Reuters) - The U.S. Securities and Exchange Commission has tapped Norm Champ, the deputy director of the agency's examinations program, to head the SEC's Division of Investment Management.

Champ's appointment comes as the SEC's five commissioners continue reviewing a controversial plan drafted by the Investment Management Division to bring new additional regulations to the $2.6 trillion money market fund industry.

Champ will replace outgoing Investment Management Director Eileen Rominger, a former Goldman Sachs executive who is leaving the SEC in July after a brief roughly year-and-a-half stint with the commission.

The Investment Management Division is responsible for oversight of mutual funds, hedge funds, private equity funds and exchange-traded funds, among others.

The division is helping to develop the proposed money market regulations currently being debated internally. SEC Chairman Mary Schapiro believes the proposal will protect against runs like the one experienced in 2008 when the Reserve Primary Fund "broke the buck."

The SEC's draft money market fund proposal contains two potential plans.

One involves the combination of a capital buffer coupled with a holdback on redemption requests by investors.

The other consists of a floating net asset value - a move that aims to curb investor complacency over the stable $1-per-share value that funds currently quote.

Three commissioners- Democrat Luis Aguilar and Republicans Troy Paredes and Dan Gallagher -have all expressed skepticism about the plan and the need for more reforms.

As the new division director, Champ will likely play a critical role in working with the commissioners to help them navigate the proposal.

"I am honored to join the division and continue to carry out the SEC's missions of protecting investors and encouraging capital formation," Champ said.

Champ has been with the SEC since 2010.

He started as the associate regional director over investment adviser and investment company examinations in New York. In June 2010, he became the deputy director of the Office of Compliance, Inspections and Examinations.

He also helped lead the creation of OCIE's first-ever examination manual, and he lectures at Harvard Law School where he has taught a class on private funds.

The SEC said he is now teaching that same course to 120 SEC colleagues.

Prior to joining the SEC, Champ worked as a general counsel at Chilton Investment Company. He also previously worked at the law firm Davis Polk & Wardell.

(Reporting By Sarah N. Lynch)