GAO Says that SEC Must Improve FINRA Oversight
The U.S. General Accounting Office issued a report recommending that the SEC enhance oversight of FINRA. GAO said that the SEC needed to improve oversight of FINRA’s review of existing regulations and FINRA’s governance and executive compensation practices. GAO says that FINRA has not engaged in the necessary review of regulations to ensure effectiveness. GAO asserts that the SEC did a better job reviewing proposed regulations and FINRA arbitrations and enforcement.