The main customers for these TIAA products are public elementary or high school teachers, whose retirement plans are not protected by ERISA rules due to an exemption. As a result, public school teachers’ retirement plans are not protected by regulations that require brokers to put customer interests before their own. In contrast, private university employees are protected by ERISA when they invest for retirement.

“What does the deputy director of SEC’s Investment Management Division do?” Lambert asked. “His job is to regulate investment companies, federally registered investment advisors and variable insurance products, which are central to these investigations and complaints.”

In a statement announcing Cellupica’s appointment, the SEC stated: “Mr. Cellupica will oversee a number of the division’s strategic, rule-making and industry engagement initiatives. He will also serve as a senior advisor to the Director Dalia Blass.”

There is no doubt that Cellupica is bright. He graduated magna cum laude from Harvard College and cum laude from Harvard Law School. “Paul’s extensive experience and knowledge of investor needs and understanding of how the Commission and its staff operate will be tremendous assets to the agency during a critical period of change and evolution in the investment management industry,” his SEC boss Blass said in a statement.

The veteran securities attorney is also glad to be back at the SEC.  “It’s a privilege to return to the Commission at a time of great importance for the country’s millions of investors who look to mutual funds and other investment products to help them prepare for retirement and other financial needs,” Cellupica said in the same SEC statement. “I am honored and excited to have the opportunity to work with Dalia and all of the other dedicated and talented professionals in the Division of Investment Management and across the agency.”

But Cellupica’s return to the agency from a giant financial services corporation that is clearly in regulators’ cross hairs raises serious questions about how he will influence investor protection policies.

For instance, will Cellupica have direct or indirect influence over the outcome of the SEC whistleblower complaint brought by TIAA employees, given TIAA is Cellupica's former employer? An SEC spokesman said no.

When asked by Financial Advisor magazine if Cellupica will divest his TIAA and MetLife stock, considering both companies have lobbied vigorously for years against best-interest rules for brokers and there is an active, open investigation into TIAA at the agency, an SEC spokesman did not answer directly, but pointed us via email to Title 5, Chapter XXXIV, Part 4401 of the Code of Federal Regulations which prohibits Cellupica, among other things, “from purchasing or selling any security while in possession of material nonpublic information regarding that security.”