The new Republican leader of the Securities and Exchange Commission has imposed fresh curbs on the agency’s enforcement staff, scaling back their powers to initiate investigations of alleged financial misdeeds, the Wall Street Journal reported today. The move by Michael Piwowar — named acting head of the agency in late January by the Trump administration — narrows actions launched during the Obama administration designed to make it easier for the Wall Street regulator to launch probes in the wake of the financial crisis and a series of colossal investment scandals. The SEC last year pursued a record number of enforcement cases, drawing criticism from Republicans who said that the agency was overly aggressive in seeking ever-higher corporate penalties. The SEC didn't announce Piwowar’s action, which revokes subpoena authority from about 20 senior enforcement officials and limits it to the enforcement division director. Piwowar’s goal wasn't necessarily to reduce the number of enforcement cases pursued by the SEC, according to sources, but was aimed at bringing consistency to a process he felt could be driven by differing standards and wasn’t subject to ample commission oversight.
