Whose phone calls do you think the SEC returns first? Investors like you, or industry insiders? How much of their time do you think SEC Commisioners and staffers spend talking to, e-mailing and meeting with—including at exclusive conference venues—industry types? I think that an investigation into these issues by the Inspector General of the SEC would be revealing and I recently wrote to the IG recommending such a review. The goal of such an investigation would not be to merely expose pandering to the industry, but to establish standards that Commissioners and staffers would have to meet annually to demonstrate a commitment to investor concerns at least equal to their responsiveness to industry. While the prospect of employment in the industry will always be an incentive for SEC Commissioners and staffers to fawn over the industry, responsiveness to investors should be a requirement for getting and keeping a job at the agency. Today neither SEC Commissioners nor staffers are required to demonstrate any proven investor protection credentials, or records of responsiveness to investor concerns. In fact, the only track records these guys and gals typically have involve successfully representing industry concerns, as opposed to those of investors.
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