SEC enforcement division gets to keep its subpoena power
The SEC's enforcement division will get to keep its power to subpoena.
Earlier today, I noted that today was the last day of a one-year trial in which the enforcement division was given the power to issue subpoenas directly.
Until then, investigators had to come before the agency's commissioners to request permission to file subpoenas, a process that was widely viewed as a hindrance to conducting swift probes into financial wrongdoing.
An SEC spokesman didn't get immediately back to me. But a new rule was posted on the SEC Web site indicating that enforcement division would hold on to the power. As a result, the enforcement director and several deputies can issue subpoenas as part of investigations into financial wrongdoing:
The Commission has determined that it is appropriate to extend the Division's authority to issue formal orders of investigation. In making this determination, the Commission considered the increased efficiency in the Division's conduct of its investigations permitted by the delegation, and the Division's continued effective communication and coordination in addressing pertinent legal and policy issues with other Commission Divisions and Offices when formal order authority is invoked.
August 11, 2010; 2:50 PM ET
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