OIG Watchdog Faults SEC Oversight Of SIPC, Including Fees Paid to Trustees

The Securities and Exchange Commission Office of the Inspector General March 30 criticized the agency’s oversight of the Securities Investor Protection Corporation, calling for “significant improvements” in several areas, including the commission’s review of the administrative fees paid to SIPC trustees.

The report, “SEC’s Oversight of the Securities Investor Protection Corporation’s Activities,” conceded that the SEC’s monitoring of SIPC complies generally with the agency’s mandate under the 1970 Securities Investor Protection Act. However, among other problems, the SEC does not review trustee fees on a systematic basis, it found.

SIPC is charged under SIPA to restore funds to investors ...