U.S. Securities and Exchange Commission (SEC) Chairman JayClayton says his agency is investigating claims that aVirginia-based advocacy group was behind suspicious comment letters submitted in support ofa rule change sought by large corporations.

"We're having an investigation done of this issue," Clayton saidTuesday in response to a question at a Senate Banking Committeehearing in Washington.

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• SEC Proposes Changes to Investor Rules

Lawmakers sought answers from Clayton on what the SEC was doingto address revelations in a Nov. 19 Bloomberg News story that somepeople whose names appeared on comment letters in support ofchanges to shareholder-voting rules said they hadn't submittedthem. A Democratic watchdog group last week called on the agency toinvestigate the role played by the 60 Plus Association, a Virginiaadvocacy group.

"Very shortly after the Bloomberg article came out, we contactedour general counsel and office of inspector general," Clayton saidin response to a question from Senator Tina Smith, a MinnesotaDemocrat.

Saul Anuzis, the president of 60 Plus, said last week thatalthough his group helped draft and submit letters, all of thepeople whose names were used gave permission, "and they will bewilling to sign an affidavit to testify as such." He said peoplewho told Bloomberg News that they didn't know about their lettersmay have forgotten.

Clayton declined to respond when asked whether he thought itshould be illegal for groups to submit comment letters in the nameof individuals.

"The comment process is an open process," he said. "Let's seewhat happens with the investigation."

–With assistance from Zachary R.Mider.

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