By Yin Wilczek
The Securities and Exchange Commission will commit more resources to pursuing accounting and financial fraud, Chairman Mary Jo White said June 18.
“You'll see more targeted resources in that area going forward,” White said. She noted that such frauds were a traditional focus for the SEC, and an area in which she is particularly interested.
However, White said that does not mean that the SEC will create a new specialized unit for accounting and financial fraud. “I think you can bring focus in different ways,” such as through a working group or a task force, she said.
White spoke at the CFO Network 2013 hosted by the Wall Street Journal. SEC Enforcement Division Co-Director George Canellos similarly said June 17 that it is unlikely that a specialized unit will be created for accounting and financial fraud [see related report in this issue]. Canellos also discussed various options in which the SEC could enhance its investigation and pursuit of such frauds.
At the same event, White announced the revision of the SEC's longstanding “neither admit, nor deny” practice.
In addition, the SEC “must get its arms around” the impact of matters such as dark pools and fragmentation, White continued. There may be benefits arising from off-exchange venues such as dark pools, and the SEC should not regulate without fully understanding the harm or advantages of those subjects, she said. White added that the new Market Information Data Analytics System--or “Midas”--will help the commission in that regard. The system is “yielding very, very useful market structure information” beyond what was previously available to the SEC, she said.
Midas collects, stores, and analyzes orders posted on the national exchanges, the modification and cancellation of those orders, the trade execution of those orders, and all off-exchange executions.
Meanwhile, White said that one matter that “keeps her up at night” is the SEC's lack of resources to examine investment advisers. The SEC currently examines only about 8 percent of registered investment advisers annually, she observed. Even though the SEC's risk-based exams are helping to identify the advisers on which the SEC should focus, the commission really needs more resources for better coverage, she said.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)