WASHINGTON – The main Wall Street regulator will give more power to control personnel to start investigations, a first sign that he plans to be more assertive under the Biden administration.
The decision of the Securities and Exchange Commission allows more supervisors of the application to authorize investigations, allowing about 36 senior officials of the agency to summon companies and individuals to obtain records or statements. The agency during the Trump administration withdrew that authority from supervisors and allowed only two officials to approve new investigations, saying it would result in more consistent decisions about what advice and complaints justified the investigations.
“Returning this authority to senior division officials, who have a proven track record of running it prudently, helps ensure that research staff can work effectively to protect investors,” the acting SEC president said on Tuesday. , Allison Herren Lee.
The number of new investigations fell each year during the Trump administration, from 1,063 in 2016 to 827 in 2019, according to the latest data released by the SEC. The number of completed application actions went from 548 in 2016 to 405 in 2020, although it reached 526 in 2019.
SEC staff can examine alleged misdemeanors without obtaining the approval of a formal investigation. But these informal investigations are supposed to last only 60 days before they are closed or turned into investigations.