This week the House of Representatives introduced proposed legislation titled Compliance, Examinations, and Inspections Restructuring Act of 2009. Among other provisions, HR 2622 would require the Securities and Exchange Commission to appoint an Ombudsman to “advise and guide such persons through the process of self-reporting, ensuring appropriate and due credit is given to the registrant upon self-reporting.” The bill also specifies a significant exception to the duty of confidentiality: If the SEC Ombuds were to make a formal, written recommendation that the SEC take action against a registered broker, dealer or investment company, the Ombuds would be required to disclose any confidential communications prompting the recommendation. The bill, written by Rep. Kevin McCarthy [R-CA22] with no co-sponsors, has been referred to the House Financial Services Committee. (SEC Actions Blog; GovTrack.)
Related posts: SEC Affirms Role of NASD Ombuds.