Schapiro Says Report on SEC Confirms Her Agency Underfunded

Securities and Exchange Commission Chairman Mary Schapiro said a consultant’s finding that the agency doesn’t have the resources to cope with a workload expanded by the Dodd-Frank Act confirms the case that she and her top aides have been presenting to Washington policy makers.

The Boston Consulting Group’s 263-page report, delivered to Congress today, “confirms the concerns I have been expressing that the SEC does not have the resources to perform all the activities expected of us,” Schapiro said in a statement. “As the report notes, despite the growth of our responsibilities and market complexities, the SEC’s resources have not kept pace.”

The independent review of the SEC’s operations, mandated by the financial-regulation law enacted last year, concluded that lawmakers should either “relax funding constraints to allow the SEC to better fulfill its current role” or “change the SEC’s role to fit available funding.”

The report also recommends that the SEC reshape itself “to maximize efficiency, effectiveness and collaboration,” urging a reconsideration of “its divisional structure, operations management and regional model.”

In response, Schapiro assigned SEC Chief Operating Officer Jeffrey Heslop to lead a series of working groups being created to address the consultant’s recommendations and report to Congress and the public on the agency’s progress.

Bloomberg News reported on the Boston Consulting Group’s findings on March 7.

To contact the reporter on this story: Jesse Hamilton in Washington at jhamilton33@bloomberg.net.

To contact the editor responsible for this story: Lawrence Roberts at lroberts13@bloomberg.net.

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