More On Legal & Compliancefrom The Advisor's Professional Library
- Whistleblowers A whistleblower is any individual providing the SEC with original information related to a possible violation of federal securities law. The Dodd-Frank Act established a whistleblower program that enables the SEC to reward individuals who voluntarily provide such information.
- Preventing and Dealing with Client Complaints Although the SEC has not provided specific guidance on how client complaints should be handled, a firms policies and procedures should provide clear direction how to do so, as neglecting complaints can exacerbate a bad situation.
The Securities and Exchange Commission has named Adam Storch to the newly created position of managing executive of its Division of Enforcement. In his new role, Storch will act as the Division's chief operating officer.
Storch will report to Robert Khuzami, the Director of the Division, who created the position as part of a restructuring he announced earlier this year, according to the SEC. The SEC says that Storch will be responsible for project management and workflow for various infrastructure and operational aspects of the Division, including budget, information technology, and administrative services. In addition, "he will oversee the workflow and process associated with the collection and distribution of Fair Funds to harmed investors," the SEC says. Along with Lorin Reisner, the Deputy Director of the Division of Enforcement, "Storch will supervise the Office of Market Intelligence, improving the collection, analysis, risk-weighing, triage, referral, and monitoring of the hundreds of thousands of tips, complaints and referrals that the agency receives each year," the SEC says.
Storch joins the SEC from Goldman Sachs & Co., where he was VP in the Business Intelligence Group.
The restructuring of the Enforcement Division seeks to reduce bureaucracy and expedite the enforcement process by eliminating unnecessary process, streamlining procedures, and rebalancing the Division's investigative staff by reducing management levels and reassigning those experienced personnel to full-time investigative work, the SEC says. In addition, the SEC says the "newly-structured Division will include specialized units that will enable staff in those units to develop expertise in priority areas and utilize that expertise to help detect earlier and more often the patterns, links, trends, and motives connected to fraud and wrongdoing."