Tuesday, September 8, 2009

What Next? Performance Fees for SEC Staffers?

Sen. Charles Schumer intends to propose legislation that would allow the SEC to keep any fines it levies against wrongdoers and to pocket the $1.5 billion in transaction and other fees it is expected to collect for the fiscal year that begins Oct 1, 2009. This is the first we are hearing of such a proposal, but it sounds like a huge potential problem for the Commission, and one that it does not need.

Self funding is a great idea, if implimented correctly, and having the SEC keep its filing fees, or a portion of those fees to fund its operations is probably sound fiscal policy. But once you start giving them the fines and penalties, you open the doors for conflicts, potential conflicts, or simply perceptions of conflicts. The SEC is having enough image problems these days.  More>>>

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