Thursday, September 09, 2010

Senator Dodd Explains that SEC Ombudsman's Mandated List of Duties in Dodd-Frank Is Not Exhaustive

Section 919D of the Dodd-Frank Act creates the SEC Ombudsman under the Office of the Investor Advocate. Senator Dodd noted that, under Section 919D, the Ombudsman will act as a liaison between the Commission and any retail investor in resolving problems that retail investors may have with the Commission or with self-regulatory organizations and review and make recommendations regarding policies and procedures to encourage persons to present questions to the Investor Advocate regarding compliance with the securities laws. According to Senator Dodd, this statutorily mandated list of duties of the Ombudsman codified in Exchange Act Section 4(g) (8)(B), is not intended to be an exhaustive list. For example, if the Investor Advocate assigns the Ombudsman duties to act as a liaison with persons who have problems in dealing with the Commission resulting from the regulatory activities of the Commission, this would not be prohibited by the Dodd-Frank Act. (Cong. Record, July 15, 2010, S5929).

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