A 263-page report has listed a number of recommendations the SEC should consider to reform the agency’s operations as it appeals to Congress for more funding.
The Boston Consulting Group was selected to produce the report, which focused on four areas: organization structure, personnel and resources, technology and resources, and relationships with self-regulatory organizations.
The group recommended the SEC “engage in a rigorous assessment” of its highest priority needs in regulatory policy, and operations and to reallocate resources accordingly. This includes possibly scaling back or eliminating activities or delegating them to SROs.
Looking at the SEC’s structure, the report suggested an organizational redesign that would fall in line with activities required under the Dodd-Frank Wall Street Reform and Consumer Protection Act. The commission should also invest in infrastructure including technology, human resources, risk management, and high-priority staff skills. Another area of reform deals with enhancing the SEC’s role as both an overseer of and co-regulator with SROs.
SEC Chairman Mary Schapiro said she welcomed the report, which was presented to Congress March 10, and highlighted initiatives the commission has take over the past two years to increase efficiency and effectiveness.
“As the report notes, despite the growth of our responsibilities and market complexities, the SEC's resources have not kept pace. This capacity gap places our markets and America's investors at risk,” Schapiro said.