SEC tightens review of complaints

WASHINGTON (Reuters) -- The Securities and Exchange Commission is taking steps to improve the way it handles whistle-blower complaints and enforcement tips, the SEC said Thursday.

The SEC, under fire from lawmakers and investors for not catching Bernard Madoff's alleged $50 billion fraud earlier, is seeking a more centralized process to identify leads for potential enforcement action and high risk for compliance exams.

0:00/3:50'Toothless' SEC overlooked fraud

Currently, tips and complaints are funneled through several different division and offices within the SEC's headquarters in Washington as well as the agency's 11 regional offices across the United States.

With the help of a federally funded research and development center called the Center for Enterprise Modernization, the SEC will examine how it evaluates tips, complaints and referrals.

"This comprehensive review will help us identify and improve areas within the agency where gaps or lack of communication may cause breakdowns that prevent us from ensuring swift and vigorous enforcement," SEC Chairman Mary Schapiro said in a statement. 


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