SEC’s GOP-Led Panel Intensifies Probe Oversight!

“Important Update: SEC’s Republican-Led Commission Enhances Oversight”
By Chris Prentice
NEW YORK (Reuters) – Sources familiar with the matter have revealed that legal professionals at the U.S. Securities Exchange Commission (SEC) have been instructed to obtain approval from politically appointed officials before initiating formal investigations. This procedural shift, not previously disclosed, may potentially slow down the investigative process, the sources said on the condition of anonymity.
The change in protocol took place following the installment of new leadership at the SEC during President Donald Trump’s administration. The current Commission consists of three members – two Republicans and one Democrat – all appointed by the president.
Recently, enforcement staff have been informed that Commission approval is now required for all formal orders of investigation, including the issuance of subpoenas for testimony or documents. Previously, this authority had been delegated to lower-level staff, with the Commission having the right to refuse, a discretion that was not always exercised.
It remains unclear whether the Commission formally revoked the delegation of this authority or who initiated the change. The SEC declined to comment on the matter, and there was no response from the White House when requested for a statement.
Advocates of this modification argue that it will protect individuals under investigation, while critics contend that it limits staff autonomy. Mark Uyeda, a Republican, currently heads the agency alongside Republican Hester Peirce and Democrat Caroline Crenshaw. Former chair Gary Gensler and fellow Democrat Jaime Lizárraga recently departed the Commission, leaving Uyeda as acting chair until the confirmation of Paul Atkins, nominated by Trump to lead the SEC.
The new leadership is anticipated to adopt a more industry-friendly approach compared to the prior administration. Despite the changes, SEC enforcement staff can still conduct informal inquiries without seeking approval, such as through information requests.
The alteration in the investigative process is one of the initial modifications made under the new leadership, signaling a shift towards greater Commission oversight early in enforcement proceedings. The President’s executive order on the first day of his term aimed to curb the politicization of federal agencies, including the SEC, although the specific effects on the SEC’s operations are yet to be fully understood.

ngne; Editing by Megan Davies, Paritosh Bansal, and Anna Driver.

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