The Securities and Exchange Commission’s inspector general has recommended that the agency’s Division of Corporation Finance implement a program of continuous surveillance for large companies, as part of a larger effort to improve the SEC’s preliminary review process.
In a June 22 report on the Division of Corporation Finance’s Preliminary Review Program, the inspector general’s office recommended that the Division consider using an approach similar to that used by the SEC’s Compliance Inspection and Examination Program, which assigns staff to monitor developments continuously at the largest investment advisory groups. A similar approach “involving large capitalized companies could help the Division improve its focus on company quality,” the report said (see box at right).
