Fox Guarding Hen House? Chamber of Commerce proposals for SEC Overhaul.
Although the report submitted by the United States Chamber of Commerce regarding an overhaul of the SEC will probably have no immediate effect, it does present several interesting specific recommendations to improve the SEC.
In particular, its 28 recommendations include adding two more commissioners to the SEC and having three separate subcommittees cast with different responsibilities. The report, authored by Jonathan Katz, the SEC’s former secretary, also suggested that a deputy chairman be appointed to oversee the SEC’s management and operations. Further, there were also many suggested changes to the SEC’s two main functions of enforcement and rule making. For example, the report indicated that the SEC’s Enforcement Division should reduce open-case inventory each year based on a number of criteria. In the rule-making function, the report suggested that cost benefit analysis should be reviewed earlier than the current process affords. The report also suggested that the SEC determine and then re-examine a rule's effectiveness after a particular period to see if the rule has followed through on its promise.
In short, it does not appear likely that there will be wholesale changes to the SEC along the lines of the report but it does provide for an interesting read.