WASHINGTON AP – The Securities and Exchange Commission must tighten its process for deciding which investment advisers to inspect if it is to avoid colossal breakdowns like the one that allowed Bernard Madoff’s multibillion-dollar fraud to go undetected for 16 years, the agency’s inspector general says.
A report released Thursday by the office of Inspector General David Kotz proposes new requirements that the SEC’s inspections office examine databases and documents related to investment advisers that may be inspected.
