SEC Commissioner Blasts “Broken Windows” Enforcement Policy

Print Friendly, PDF & Email

Publisher: Financial Advisor
Author: Ted Knutson
 

Republican SEC commissioner Michael Piwowar made wide ranging attacks on the agency’s enforcement priorities, specifically in regards to SEC Chairman Mary Jo White’s “Broken Windows” enforcement policy.

SEC Chairman Mary Jo White has outlined her aim to go after rule violations no matter how small, leading Piwowar to counter, “if every rule is a priority, no rule is a priority”.

Mr. Piwowar said publicity surrounding high-dollar penalties wrongly tells commission staffers the way to achieve promotions and raises is to go after these kind of violations, when smaller fraud by individuals and companies can cause more investor harm.

As examples, he said financial reporting deception can lead to significant dollar loses for a company, but little harm to a diversified investor’s wealth. On the other hand, he noted, fraud by an advisor can wipe out a client’s entire savings.

For full access to other suggestions Mr. Piwowar had to make, please click here.

By : Securex /October 23, 2014 /Compliance, General EDGAR filing, SEC News and Public Statement, Securites Law /0 Comment