In a March 2, 1972 memo, Casey announced the creation of an Advisory Committee on Enforcement Policies and Practices. The Committee, which included John A. Wells and former SEC Chairmen Ralph H. Demmler and Manuel F. Cohen, was commissioned to work with the staff in examining the SEC's enforcement objectives, policies and practices.
While enforcement responsibilities had been handled for years as part of the Division of Trading and Exchanges, later known as the Division of Trading and Markets, Casey saw a need to create a separate division that could move rapidly and respond effectively to enforcement issues. The Committee delivered its report in June, and by August, Casey announced a major SEC reorganization, creating the Division of Enforcement with Irving M. Pollack as its head, and a new Division of Market Regulation, with General Counsel G. Bradford Cook as its director.
The duties of regulating mutual funds were split off from the old Division of Corporate Regulation and given to the newly created Division of Investment Companies, with Allan S. Mostoff as director.(25)
The Division of Enforcement would become a major force in insuring compliance with federal securities laws.
(25) "S.E.C. to Shift Personnel In Over-All Reorganization," New York Times, August 2, 1972, 47.
(Courtesy of Gregory G. Faragasso)
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