SEC Lacks Reliable Tools to Monitor Employee Trades, Audit Says
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The U.S. Securities and Exchange Commission lacks a reliable system for ensuring that its employees don’t trade stocks of companies under investigation, the agency’s watchdog said.
The SEC’s computer program for monitoring employee trades approved eight transactions from 2009 to 2011 that violated the agency’s ethics rules because they were in shares of companies being probed by the regulator, according to an audit released today by SEC Inspector General Carl Hoecker.