5.7.2009 SEC Director of Enforcement Robert Khuzami testified before the Subcommittee to provide his views on: (1) the extent to which the resource shortages and enforcement policies of the SEC in recent years have hampered aggressive enforcement of securities laws; (2) what changes are needed to ensure that the SEC does not once again fall behind on its enforcement responsibilities; and (3) what changes Congress should consider to ensure adequate resources and authority for the SEC to fulfill its vital enforcement role. After giving a brief recap of the Division’s recent successes, the Director discussed the Division’s challenges and how to refocus it. The Director requested additional resources to be allocated to administrative and paralegal support, information technology support, trial lawyers, and hiring a chief operating officer/business manager. The Director discussed ways to broaden or clarify the SEC’s authority to better enforce the federal securities laws and protect investors. The Director next discussed the GAO’s report with recommendations for actions the SEC can take to enhance its enforcement program, and he agreed with those recommendations and discussed implementing them.
Click http://www.sec.gov/news/testimony/2009/ts050709rsk.htm to access Director Khuzami’s testimony.