By DANA LIEBELSON
The Project On Government Oversight is urging lawmakers to reduce the government's reliance on private self-regulatory organizations. These self-regulatory organizations, as POGO writes in a letter sent Monday to Congress, are a breeding ground for conflicts of interest and ultimately hurt the public interest.
In particular, POGO cites the National Futures Association, a self-regulatory organization, which has a board filled with industry representatives and collects membership fees from those firms it is supposed to oversee. An organization like this could “have enhanced susceptibility to industry capture,” according to a recent report by the Securities and Exchange Commission.
As POGO points out in its letter: