Conflicts of Interest Slow SEC Enforcement
Posted at 3:15 p.m. on Feb. 5
“Enforcement cases at the Securities and Exchange Commission go nowhere unless approved by a majority of the agency’s commissioners,” but the Wall Street Journal notes that conflicts of interest often prevent the agency from resolving these issues.
“The agency’s four commissioners—one slot is vacant—are barred from enforcement votes and certain other matters affecting more than 20 companies… Under government ethics laws and SEC rules, agency commissioners and staff can’t participate in anything with a direct impact on their financial interests or connected to certain organizations, such as recent previous employers, clients or their spouse’s employer.”
