hmmm - well this SOUNDS good - from law.com
The SEC also plans to enhance its oversight of derivatives and review recent changes to the regulation of short sales.
New SEC Goals Emphasize Enforcement -- and Winning
Jenna Greene
10-09-2009
law.com
The Securities & Exchange Commission on Thursday released a draft of its strategic plan for the next five years, outlining a series of 70 initiatives largely "designed to address specific problems brought to light by the global financial crisis."
The goals include ramped up enforcement to "obtain swift and firm sanctions, while remaining fair and reasonable." The plan sets the bar high, calling for the SEC to win its cases 90 percent of the time. Or as the plan puts it, to achieve a "favorable outcome for the SEC, including through litigation, a settlement, or the issuance of a default judgment." At the same time, the agency is supposed to "file large, difficult, or precedent-setting cases when appropriate, even if success is not assured."
The plan also calls for filing a first enforcement action within two years of opening an investigation at least 65 percent of the time. "In conducting investigations, the enforcement program continually strives to balance the need for complete, effective and fair investigations with the need to file enforcement actions in as timely a manner as possible," according to the plan, which is open for public comment until Nov. 16.
The SEC will also expect 92 percent of defendants to pay their fines -- civil monetary penalties or disgorgement -- within 180 days of the due date. The commission also pledges to return more disgorged funds to harmed investors, though a target number was not set.
Policy changes or rulemakings may be on the horizon in several areas. The plan calls for a review of the effect of algorithmic and other automatic trading systems on the markets, and a look at the options market, focusing on "non-discriminatory access to exchanges' quotations," and "uniform disclosure of execution quality statistics," and whether quoting options in penny increments is appropriate.
The SEC also plans to enhance its oversight of derivatives and review recent changes to the regulation of short sales.
Increased oversight of credit rating agencies is another goal. The SEC promises measures to increase the transparency of rating methodologies and to address conflicts of interest. Investors can also expect better access to broker-dealer and investment advisor background checks.
The agency also wants to do a better job hanging on to its employees, setting a goal of no more than 8 percent annual turnover. And they want to do better in the biennial ranking of best places to work in the federal government, finishing in the top 5. This year, the SEC was 11 out of 30 (The Nuclear Regulatory Commission was No. 1).
This article first appeared on The BLT: The Blog of Legal Times.
law.com
Document: SEC's "Strategic Plan for Fiscal Years 2010-2015"
sec.gov |
