Do you think the nation’s top securities regulator goes overboard in enforcement? One of its outgoing commissioners thinks it does.
U.S. Securities & Exchange Commission member Paul Atkins recently co-wrote an article claiming that enforcement issues are so egregious that the SEC needs to set up an independent review panel. The last time the SEC had one was 36 years ago.
A Republican known for constantly bird-dogging cost issues regarding enforcement, notably the Sarbanes-Oxley Act, Atkins has been the commission’s most outspoken leniency hawk since he was appointed in 2002. He has constantly urged free market, non-governmental solutions to securities matters.
Among the matters that Atkins believes need addressing:
- SEC regulators should be required to fully disclose all of their evidence and their case as they go after an alleged violator.
- If no wrong-doing is found, SEC watchdogs should close their cases fully and promptly.
- The SEC should not be allowed to subpoena all e-mails, voice mails, records and other documents in a case as this cases undue cost burden on the defendant.
- Fines should be consistent with the SEC’s mission to protect investors.
- The SEC should stop going after smaller, easier cases just to make a news media splash.
Since I have covered the SEC for a while, I have to say I admire Atkins for his consistent stances. There’s nothing wishy-washy about him. But I usually disagree with what he stands for. It seems to me that withl so many companies in deep do-do, including Countrywide Financial, Bear Stearns, Wachovia, etc., the SEC needs to be toughening its enforcement not weakening it. Your view?
(Image courtesy SEC.)
