Former SEC Chairman Mary Schapiro said Tuesday two of the biggest gains the five-year old Dodd-Frank financial reform act gave the SEC were the ability to regulate hedge funds and give rewards to whistleblowers.
Speaking at a Council of Institutional Investors conference in Washington, D.C., Schapiro said the whistleblower payments have been a significant help to the SEC’s enforcement efforts.
Speaking on other regulatory matters, Schapiro said public complaints that SEC employees are soft on enforcement to increase their chances of landing a private job on Wall Street are a significant issue.
One possible solution is to raise pay at the SEC so people can have a lifelong career at the agency, she said.
Echoing her concern, Gary Gensler, former chairman of the Commodity Futures Trading Commission, noted that experienced enforcement attorneys at the CFTC earn less than first-year lawyers on Wall Street.
Schapiro, currently vice chairman at the Promontory Financial Group consulting firm, predicted it would be many months before the SEC proposes a fiduciary rule for broker-dealers. But it will be done before President Barack Obama leaves office in January 2017, she predicted.