The U.S. Securities and Exchange Commission (SEC) has officially revoked its enforcement staff’s ability to initiate formal investigations without prior approval from the Commission.
This decision, announced earlier this week, rescinds a rule that had been in place since 2009, which granted the head of enforcement the authority to issue formal orders, including subpoenas, independently.
The SEC stated that the change would ensure its investigation resources are more closely aligned with the agency’s strategic priorities.
The move reflects a shift back to a structure where formal investigation authority is centrally controlled by the Commission itself, rather than delegated to enforcement staff.
Previously, SEC attorneys had been instructed to seek approval from politically-appointed leadership before issuing formal orders. Although the Commission did not initially confirm whether it had formally voted to revoke the authority, the SEC’s notice clarifies the decision.
The new regulation will take effect 30 days after its publication in the Federal Register.
An SEC spokesperson explained, “We are returning to how the Division operated for most of its existence, ensuring the Commission has the utmost insight into the cases we bring throughout the process.”
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