The Securities and Exchange Commission announced it is adopting new internal rules intended to avoid conflicts of interest among employees. In a statement released by Chairman Mary Schapiro early this week, she said that the agency plans to implement the recommendations proposed by its Office of the Inspector General to improve the procedures and processes within its Office of the Ethics Counsel.
The OIG report was issued in response to the case of former SEC counsel, David Becker’s potential conflict of interest. Becker was involved in making policy decisions at the SEC on the Bernard Maddoff scandal, even though he was personally involved in the case due to an inheritance with ties to Maddoff funds. The inspector general issued a three recommendations for the SEC to adopt to avoid future staff’s personal involvement when carrying out their duties on behalf of the agency.
