SEC faces challenges with new reform law

In the financial services industry, a lot of managers are busy pondering the impact of Dodd-Frank. Clearly, the compliance function just got more interesting--a lot more. But as you ponder your system, control, reporting and other tweaks, be aware that perhaps an even more daunting challenge looms at the agency that will oversee much of this.

According to Compliance Week, the SEC (SEC news) is gearing up in a massive way. The beleaguered agency has estimated it will need roughly 800 new employees to carry out its new and expanded duties. The SEC has been tasked with enforcing a large number of new rules, creating five new offices, and conducting many studies, often within a year. That's a lot for a perennially understaffed agency.

The proposed federal 2011 budget included a request for $24 million to begin financial reform implementation. But the agency will need far more than that. This is a daunting challenge. I cannot remember a time when a reform package left so much to be decided. Lobbyists no doubt sense a weak opponent. But it is in the best interests of all for this law to be implemented efficiently. Perhaps more people skilled in the corporate compliance area will heed the call of public service.

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