The U.S. Chamber of Commerce Wednesday released recommendations aimed at improving the Securities and Exchange Commission’s regulatory effectiveness primarily by improving how the agency manages itself.
The agency has come under intense criticism given the problems in the financial markets and the agency’s failure to act more quickly against investment adviser Bernard Madoff, who is accused of creating the largest Ponzi scheme in history.
While there has been much discussion of whether the agency has adequate resources to do its job, former SEC Secretary Jonathan Katz, the report’s author, said there has not been enough focus on the “allocation and management” of SEC resources.
Given this, many of the recommendations are focused on strengthening the management, structure and oversight of the agency. For example, the report calls for the hiring of a chief operating officer with “sufficient” authority to oversee daily operations throughout the SEC.
It called for the five-member commission to play a greater role in the application and interpretation of regulator policy. This may require congressional action to amend the Sunshine Act, which requires that all meetings of the commission be open to the public, to allow for greater communication between the commissioners and staff.
Full Article Report calls for better management at SEC
Tags: better management, SEC