Lawmakers are also asking questions about circumstances surrounding the SEC's high-profile fraud case against Goldman Sachs Group Inc. The SEC vote on filing the Goldman charge was 3-2, with the commission's two Republicans voting "no." Normally the agency prefers to have unanimous support when bringing enforcement actions, leading some critics to suggest the move was politically motivated.
The SEC's Inspector General said Friday that he'll investigate those concerns in response to a request by Rep. Darrell Issa (R., Calif.), the top Republican on the House Oversight Committee.
Chief compliance officers generally wouldn't be involved in business decisions, such as whether to bring enforcement cases, says Murphy, but they could help prevent other potential embarrassment arising from those decisions, such as conflicts of interest or the appearance of political motivation.
"That's the person in the room always saying 'Okay, before we go forward on this, what's the potential worst that could happen?'"
An SEC spokesman said the agency's Office of the General Counsel manages organizational compliance. It includes an ethics office, which is responsible for training and counseling employees on ethical responsibilities, and recourse for violations, he said. The SEC's inspector general supplements those functions through audits and investigations of the agency, he said.
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