![Risk.net](https://www.risk.net/sites/default/files/styles/print_logo/public/2018-09/print-logo.png?itok=1TpHrpuP)
SEC to revamp whistle-blower process
Following a series of failures to spot large-scale fraud, the SEC is moving to improve handling of whistle-blowing and enforcement tips
In its bid to improve the enforcement process, the SEC has enlisted the services of the Center for Enterprise Modernization, a federally funded research and development centre, to begin immediately working with the SEC to conduct a comprehensive review of internal procedures used to evaluate tips, complaints and referrals. The agency is seeking to establish a more centralised process that will more effectively identify valuable leads for potential enforcement action as well as areas of high risk for compliance examinations.
"As we continue to reinvigorate our enforcement efforts as an agency, it's vitally important that we move very aggressively to improve staff's use of tips and complaints from investors and whistle-blowers," said Schapiro. "This comprehensive review will help us identify and improve areas within the agency where gaps or lack of communication may cause breakdowns that prevent us from ensuring swift and vigorous enforcement."
The SEC typically receives hundreds of thousands of tips and complaints per year from investors and the general public as well as from those the SEC regulates, including broker-dealers, investment advisers and public companies. These communications come through a variety of means, including web forms, email, phone calls, mail, messengers and faxes. Tips and complaints can come into several different divisions and offices within the SEC's Washington, DC, headquarters, and each of the SEC's 11 regional offices around the country. The SEC also receives referrals from self-regulatory organisations (SROs), other government agencies, and foreign regulators.
The SEC's review will scrutinise the agency's processes for receiving, tracking, analysing and acting upon the tips, complaints and referrals from these outside sources. The goal of the review is to improve the efficiency, effectiveness and overall management of how the agency addresses tips, complaints and referrals, and how SEC staff utilise the information received to protect investors.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Modernising compliance functions with regtech
Regtech addresses the complexities of regulatory requirements, offering innovative tools to modernise compliance functions, streamline processes and enhance efficiency. This article explores its role in compliance and reporting within the banking sector,…
For the Fed discount window, destigmatisation starts at home
US supervisors must change tack to encourage central bank liquidity utilisation
Study finds just 10 banks plan to apply for FRTB models
Research provides extra insight on reasons for decline in internal models
EU banks hedge net interest income to pass new IRRBB test
Would-be outliers look to cut sensitivity of cashflows to rate moves, but at what cost?
Banks cry foul over shock decision from Basel Committee
Asset and liability management professionals question severity of criteria in revised IRRBB tests
Fresh EU push for single securities supervisor to compete with US
But MEP expresses ‘concern’ EU nations will stall revival of capital markets union
Discord deepens over fund-linked trades in FRTB
More banks use punitive approach to capital treatment under new trading book regime, irking regulators
AI, quantum computing and tokenisation set to transform finance – Menon
But significant barriers remain preventing the technologies from unlocking their full potential