Section 967 – Commission Organizational Study and Reform

Section 967 of the Dodd-Frank Wall Street Reform and Consumer Protection Act was not codified. It reads as follows:

SEC. 967. COMMISSION ORGANIZATIONAL STUDY AND REFORM.

(a) Study Required.--

(1) In general.-- <<NOTE: Deadline.>> Not later than the end of the 90-day period beginning on the date of the enactment of this subtitle, the Securities and Exchange Commission (hereinafter in this section referred to as the "SEC'') shall hire an independent consultant of high caliber and with expertise in organizational restructuring and the operations of capital markets to examine the internal operations, structure, funding, and the need for comprehensive reform of the SEC, as well as the SEC's relationship with and the reliance on self-regulatory organizations and other entities relevant to the regulation of securities and the protection of securities
investors that are under the SEC's oversight.
(2) Specific areas for study.--The study required under paragraph (1) shall, at a minimum, include the study of--

(A) the possible elimination of unnecessary or redundant units at the SEC;
(B) improving communications between SEC offices and divisions;
(C) the need to put in place a clear chain-of-command structure, particularly for enforcement examinations and compliance inspections;
(D) the effect of high-frequency trading and other technological advances on the market and what the SEC requires to monitor the effect of such trading and advances on the market;
(E) the SEC's hiring authorities, workplace policies, and personal practices, including--

(i) whether there is a need to further streamline hiring authorities for those who are not lawyers, accountants, compliance examiners, or economists;
(ii) whether there is a need for further pay reforms;
(iii) the diversity of skill sets of SEC employees and whether the present skill set diversity efficiently and effectively fosters the SEC's mission of investor protection; and
(iv) the application of civil service laws by the SEC;

(F) whether the SEC's oversight and reliance on self-regulatory organizations promotes efficient and effective governance for the securities markets; and
(G) whether adjusting the SEC's reliance on self-regulatory organizations is necessary to promote more efficient and effective governance for the securities markets.

(b) Consultant Report.--Not later than the end of the 150-day period after being retained, the independent consultant hired pursuant to
subsection (a)(1) shall issue a report to the SEC and the Congress containing--

(1) a detailed description of any findings and conclusions made while carrying out the study required under subsection (a)(1); and
(2) recommendations for legislative, regulatory, or administrative action that the consultant determines appropriate to enable the SEC and other entities on which the consultant reports to perform their statutorily or otherwise mandated missions.

(c) SEC Report.--Not later than the end of the 6-month period beginning on the date the consultant issues the report under subsection (b), and every 6-months thereafter during the 2-year period following the date on which the consultant issues such report, the SEC shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate describing the SEC's implementation of the regulatory and administrative recommendations contained in the consultant's report.