The US Securities and Exchange Commission (SEC) has tightened oversight of probes under new leadership, according to sources. Lawyers at the agency must now seek permission from the appointed commissioners before formally launching investigations.
This change marks a shift away from recent norms, where staff could launch investigations without approval. The move is expected to slow down investigations and give commissioners more control over enforcement earlier in the process.
The change was made under Republican Commissioner Mark Uyeda’s leadership since President Donald Trump took office. Commissioners are now required to approve all formal orders of investigation, which require subpoenas for testimony or documents. This delegation of authority has been revoked, reducing staff autonomy but potentially protecting individuals from harm during investigations.
While some argue that the change will reduce harm, others believe it takes away staff’s ability to work independently. The new leadership is expected to be more industry-friendly, and Commissioner Paul Atkins, who was tapped by Trump to lead the agency, is poised to make significant changes.
The SEC’s enforcement staff can still informally investigate without approval, but this change marks a shift in power dynamics between commissioners and staff. The implications of this move remain unclear, but it is expected to impact the way investigations are conducted at the agency.
Source: https://www.reuters.com/world/us/secs-republican-led-commission-tightens-oversight-probes-sources-say-2025-02-02