SEC Commissioner Criticizes Compliance Liability Framework

Law360, Washington (April 9, 2013, 7:07 PM EDT) -- U.S. Securities and Exchange Commissioner Daniel Gallagher on Tuesday criticized the agency's attempts to limit liability in broker-dealer supervision cases, saying the SEC's current scheme encourages supervisors and compliance officers to shirk their duties rather than risk trouble by stepping in to fix problems.

Although Gallagher said the agency wants to help limit broker-dealers compliance officers' liability for failing to prevent SEC regulation violations from those they supervise, he told a broker-dealer audience on Tuesday that he has concerns that the SEC's tactics focus on the...
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