Views on improving the integrity of global capital markets
22 November 2010

Go SEC Go!

Posted In: US SEC

Get out your pom poms — a cheer for the U.S. Securities and Exchange Commission (SEC) is in order. The agency has had multiple detractors in response to some recent goofs (Madoff, Stanford Financial), not to mention strong criticism and suspicion over various enforcement determinations.

Today it was revealed there are multiple and extensive insider trading probes underway. The first step in any effort to restore trust and confidence in the financial services industry must be an active enforcement capability with meaningful consequences. By many accounts, the investigation and enforcement functions at the SEC have been in great disarray until recently. However, the current chair and commissioners have noticeably improved both the morale and motivation of applicable staff. Most importantly, they have been increasingly active and bold in restoring meaningful oversight and consequences to wrongdoers. We should give credit where credit is due, and Dodd-Frank debates should ensure adequate resources for the SEC. Go SEC go!

About the Author(s)
Kurt Schacht, JD, CFA

Kurt Schacht, JD, CFA, is the Senior Head, Advocacy Advisor, Capital Markets Policy at CFA Institute, where he oversees advocacy efforts and the development, maintenance, and promotion of the highest ethical standards of practice for the global investment management industry.

1 thought on “Go SEC Go!”

  1. Sam Jones, CFA says:

    Our responsibility as investment professionals is to help the SEC and DoJ focus on the mosaic theory and try to establish a bright line of what constitutes going forward creative, in-depth analysis along the materiality spectrum. A guest on Bloomberg this morning touched on the importance of cpompliance and (culture of) ethics as practiced by especially institutional investors. Right on! At the crux of the matter for CFA Institute and all members and CFA candidates are our Code and Standards. Thoroughness, diligence, and investment basis are more than flags for us to wrap around ourselves. It’s in our DNA to find a competitive edge as analysts. We need to reach out and help regulators and enforcement determine where to draw the line.

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