WASHINGTON (Reuters) – The U.S. Securities and Exchange Commission has decided to formally revoke enforcement staff’s authorization to formally launch investigations without the commission’s approval, the agency said this week.
The new rule rescinds an authority that was first delegated to the head of enforcement in 2009 to issue formal orders, such as a subpoena. The move will “more closely align the Commission’s use of its investigation resources with Commission priorities,” it said in a notice published on the SEC’s website on Monday.
Lawyers at the SEC had previously been told they would need to seek permission from the political-appointed leadership to issue orders, Reuters previously reported. Reuters could not ascertain at the time if the Commission had voted formally to revoke the authority from enforcement staff.
The new rule will be effective 30 days from publication in the Federal Register, the SEC said in the notice.
“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,” an SEC spokesperson said in an emailed statement.
(Reporting by Chris Prentice; Editing by Nick Zieminski)
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