SEC Slow to Implement IG Recommendations Despite Ample Room for Improvement

POGO has discovered that the Securities and Exchange Commission (SEC) has failed to implement over 200  — or roughly 60 percent — of the Office of Inspector General's (OIG) audit and investigative recommendations over the last two years.

This finding comes after numerous deficiencies in the SEC's enforcement and investigative practices were brought to light in the aftermath of the Bernie Madoff scandal.  As Danielle Brian said in a statement today, "for an agency that’s recovering from the worst failure in its history, the SEC’s decision to ignore so many of the Inspector General’s recommendations is simply astonishing."

Earlier today, POGO sent a letter to SEC Chairman Mary Schapiro urging her to pick up the pace and address the unimplemented recommendations. From the letter:

"It is simply unacceptable for a federal agency to ignore so many of the findings and recommendations made by its OIG. Based on the SEC's poor track record as revealed in these documents, the public has every reason to question the agency's commitment to implementing the sorely needed post-Madoff reforms. We urge you to make the OIG's recommendations a top priority for the agency moving forward."

Evidence of the SEC's foot-dragging was found in two documents obtained by POGO through a Freedom Of Information Act request.  You can find out more here:

• POGO's letter to Chairman Schapiro
• Recommendations made in SEC OIG reports of investigation since December 2007
• Recommendations made in SEC OIG audits since December 2007

-- Bryan Rahija