A banking law expert at the University of Texas School of Law will head a new division at the U.S. Securities and Exchange Commission that will assess and address risks posed by innovative financial products.

The SEC announced today that professor Henry Hu will oversee the new Risk, Strategy and Financial Innovation division, which will combine the SEC's Office of Economic Analysis and Office of Risk Assessment, according to the Blog of Legal Times.

"This new division will enhance our capabilities and help identify developing risks and trends in the financial markets," says Chairman Mary Schapiro, to whom Hu will report, in a written SEC statement. "By combining economic, financial, and legal analysis in a single group, this new unit will foster a fresh approach to exchanging ideas and upgrading agency expertise."