The Government Accountability Office will review the Securities and Exchange Commission's oversight of self-regulatory organizations such as the National Association of Securities Dealers and the operations of the SEC's Division of Enforcement and Office of Compliance, Inspection, and Examination, according to a GAO letter to Senate Finance Committee Chairman Charles Grassley, R-Iowa.
The review is in response to Mr. Grassley's request that the agency examine the SEC to ensure that self-regulatory organizations are enforcing member compliance with federal securities laws. In that letter, dated Sept. 19, Mr. Grassley said the system of self-regulation via the SROs "can function effectively," but "for it to do so, SEC must vigilantly ensure that SROs are fulfilling their regulatory responsibilities related to, among other things, member conduct, market activity, and trading practices." Among the SEC practices Mr. Grassley wanted investigated was "Enforcement Division-wide measures for assessing and evaluating performance of division personnel."
