The SEC continues to implement the agency's three-phase plan to streamline its system for tracking tips and complaints about alleged securities violations. The SEC expects to have the streamlined system up and running by the end of 2010. During testimony before the Subcommittee on Financial Services and General Government, Chairwoman Mary Shapiro described why the streamlining was necessary to identify the most important tips and prevent failures of the agency that have occurred in the past (Testimony). One alleged agency failure was the lack of communication between the SEC's Division of Enforcement and its Office of Compliance Inspections and Examinations, which may have impeded timely action against the Ponzi scheme orchestrated by Bernard Madoff.
During her testimony, Shapiro described the first phase of the project, which involved centralizing existing tips and complaints from a multitude of sources into a common searchable database. The second phase, which has now begun, involves upgrading the SEC's intake system to increase the amount of searchable information attached to the tips and complaints filed. The third and final phase will implement risk analytics tools to identify trends among the tips and complaints and separate the most promising tips and complaints among the information received from the public.