August 6, 2009
SEC extends subpoena policy
Policy makers at the U.S. Securities and Exchange Commission have granted new subpoena power to its enforcement division, the policing unit director said.
Robert Khuzami, director of the regulator's enforcement branch, said the previous power to issue subpoenas only through the SEC's five commissioners has been extended to the enforcement division itself, creating a possibility for faster and, perhaps, more investigations, The Washington Post reported Thursday.
If defense counsel resist the voluntary production of documents or witnesses, or fail to be complete and timely in responses "¦ there will very likely be a subpoena on your desk the next morning,Khuzami said in a speech at the New York City Bar Association.
Khuzami also said the SEC would create and Office of Market Intelligence, responsible for reviewing the tips -- numbering in the hundreds of thousands -- the SEC receives each year.