Lawyers at the US Securities Exchange Commission (SEC) have been told to seek permission from the politically appointed leadership before launching formal probes, a change that could slow down investigations. The shift in procedure was made under new leadership at the SEC since President Donald Trump took office.
Typically, five commissioners oversee the independent agency. Currently, there are three members: two Republicans and one Democrat. Commissioners are appointed by the president. Enforcement staff must now seek approval from the Commission for all formal orders of investigation, which require issuing subpoenas for testimony or documents.
The change has been made to reduce harm to individuals subject to investigations, while some argue it takes away staff autonomy. The SEC’s new leadership, led by Republicans Mark Uyeda and Hester Peirce, aims to be friendlier to industry.
Enforcement staff can still informally investigate without approval, but the Commission now takes more control over enforcement earlier in the process. This change is one of the first in enforcement at the SEC under the new leadership.
Source: https://finance.yahoo.com/news/exclusive-secs-republican-led-commission-120322478.html