U.S. Securities and 

Exchange Commission

In Brief

FY 2013 Congressional Justification

February 2012
U.S. Securities and Exchange Commission

TABLE OF CONTENTS

Subject Page

Executive Summary 1 

Tables 

FTE and Positions by Program 12 

Obligations by Object Class 13 

FY 2013 Request by Strategic Goal and Program 14 

Summary of Changes 15 

Offsetting Collections and Spending Authority 16 

Appropriations Language 17 

Request by Strategic Goal 

FY 2013 Request by Strategic Goal 18 

Goal 1: Foster and Enforce Compliance with the Federal Securities Laws 20 

Goal 2: Establish an Effective Regulatory Environment 31 

Goal 3: Facilitate Access to the Information Investors Need to Make 38 

 Informed Investment Decisions 

Goal 4: Enhance the Commission’s performance through effective alignment 

 and management of human, information, and financial capital 44 

 

Request by Program

Division of Enforcement 51 

Office of Compliance Inspections and Examinations 52 

Division of Corporation Finance 53 

Division of Trading and Markets 54 

Division of Investment Management 55 

Division of Risk, Strategy and Financial Innovation 56 

Office of the General Counsel 57 

Other Program Offices 58 

Office of Chief Accountant 59 

Office of Investor Education and Advocacy 60 

Office of International Affairs 61 

Office of the Administrative Law Judges 62 

Office of the Investor Advocate 63 

Office of Credit Ratings 64 

Office of Municipal Securities 65 

Agency Direction and Administrative Support 66 

Agency Direction 67 

Office of the Chief Operating Officer 68 

Office of the Ethics Counsel 69 

Office of Minority and Women Inclusion 70 

Office of Equal Employment Opportunity 71 

Office of the Inspector General 72 

Appendix A-Acronyms 73

 
1 

EXECUTIVE SUMMARY

The U.S. Securities and Exchange Commission (SEC) is pleased to submit our fiscal year (FY) 2013 

Congressional Budget request to execute our three part mission: to protect investors, maintain fair, 

orderly, and efficient markets, and facilitate capital formation. Over the past three years, the SEC has 

focused on improving core operations. With the support of Congress, agency leadership and staff 

have made significant progress, including revitalizing and restructuring the enforcement and 

examination functions, revamping the handling of tips and complaints, enhancing safeguards for 

investor assets, improving internal collaboration to achieve important synergies, improving our risk 

assessment capacity, and recruiting more staff with specialized expertise and experience. 

These efforts are achieving results. During FY 2011, the Commission:

• Filed 735 enforcement actions—more than ever filed in a single year in SEC history. The SEC 

was better able to discover and stop illegal activity earlier and obtained more than $2.8 billion 

in penalties and disgorgement ordered in FY 2011. 

• Implemented a more risk-focused examinations program and completed over 1,600 oversight 

exams designed to detect and prevent fraud, strengthen industry compliance, and monitor new 

and emerging risks. This risk-focused examination strategy resulted in improved guidance to 

the financial industry about risky practices and actionable information for enforcement 

investigations. 

• Implemented a new Whistleblower Program that is providing high-quality information 

regarding otherwise difficult to detect wrongdoing and permitting investigators to focus 

resources more efficiently. 

• Improved internal financial controls, resulting in a GAO Audit Opinion with no material 

weaknesses, and laid the groundwork for the migration of the SEC’s financial management and 

reporting system to a Federal Shared Services Provider. 

• Operationalized a number of internal reforms designed to improve the organizational structure, 

strengthen capabilities, improve controls and efficiencies, and enhance workforce 

competencies and talent. Successes to date include: establishing a unified Chief Operating 

Officer function; launching a Continuous Improvement Program to systematically reduce 

unnecessary costs; conducting comprehensive assessments of the Office of Administrative 

Services, Office of Financial Management, and Office of Human Resources 

operations; implementing a new performance management system; and improving staff 

training. 

• Focused external hiring opportunities on filling strategic vacancies, and obtaining specialized 

industry expertise in areas such as over-the-counter derivatives and credit ratings.

In addition to improving longstanding agency operations, the Commission has worked to implement 

significant new responsibilities assigned to the agency under the Dodd-Frank Wall Street Reform and 

Consumer Protection Act (Dodd-Frank Act). These new activities include important market reforms 

such as developing a regulatory framework for a more transparent, efficient and competitive 

marketplace for over-the-counter derivatives; making available to regulators and the investing public 

information about the identities, size, gatekeepers and disciplinary history of hedge fund and other 

private fund advisers; strengthening regulation of asset-backed securities; and proposing rules 

designed to improve the integrity and increase the transparency of the credit rating process. 

While the agency’s budget has grown in recent years, so have our responsibilities and the size and 

complexity of the markets we oversee. For example, during the past decade, trading volume in the 
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equity markets has more than doubled, as have assets under management by investment advisers, with 

these trends likely to continue for the foreseeable future. 

Today, the SEC has responsibility for approximately 35,000 entities, including direct oversight of 

11,700 investment advisers, 9,700 mutual funds and exchange traded funds (ETFs), and close to

4,500 broker-dealers with more than 160,000 branch offices. We also have responsibility for 

reviewing the disclosures and financial statements of more than 9,100 reporting companies. The SEC 

also oversees approximately 450 transfer agents, 15 national securities exchanges, 8 active clearing 

agencies, 9 nationally recognized statistical rating organizations (NRSROs), as well as the Public 

Company Accounting Oversight Board (PCAOB), Financial Industry Regulatory Authority (FINRA), 

Municipal Securities Rulemaking Board (MSRB), and the Securities Investor Protection Corporation 

(SIPC). Due to recent changes in the law, smaller investment advisers will transition from SEC to 

state oversight during 2012, but with the corresponding addition of advisers to private funds, we 

estimate that the agency will still oversee approximately 10,000 investment advisers with about

$44 trillion in assets under management. Over FY 2012 and FY 2013, we will also fully implement 

our new oversight responsibilities with respect to municipal advisors and entities registering with us in 

connection with the security-based swap regulatory regime.

Seven years ago, the SEC’s funding was sufficient to provide nineteen examiners for each trillion 

dollars in investment adviser assets under management. Today, that figure stands at ten examiners per

trillion dollars. A number of financial firms spend many times more each year on their technology 

budgets alone than the SEC spends on all of its operations. Similarly, our enforcement teams bring 

cases against firms that spend more on lawyers’ fees than the agency’s annual operating budget.

The SEC fully recognizes that it is incumbent upon us to maximize our efficiencies and continue our 

organizational modernization efforts. As we protect investors, we have an obligation to be good 

stewards of the resources that are provided to us. We are carefully reviewing our activities to identify 

ways to reduce levels of review and improve efficiency. In addition, the ability to access common 

business technologies is permitting us to improve productivity. These continuing efforts, along with 

continued congressional support, will be essential to enable the SEC to achieve its mission even as the 

financial markets continue to grow in size and complexity.

FY 2013 Request

The SEC requests $1.566 billion in FY 2013. This represents an increase of $245 million above

the agency’s FY 2012 appropriation and will support 5,180 positions (4,509 FTE)—an increase of

676 positions (associated with 196 FTE) over projected FY 2012 levels. 

As in FY 2012, the FY 2013 budget request will be fully offset by the matching collections of 

securities transaction fees. In FY 2012, the fee rate will equal approximately two cents per every 

$1,000 of transactions. Beginning in FY 2012, the SEC is required to adjust fee rates so that the 

amount collected will match the total amount appropriated by Congress. As a result, the SEC is 

deficit-neutral, as any increase or decrease in the SEC’s budget would result in a corresponding rise or 

fall in offsetting fee collections. 

The FY 2013 request will provide resources sufficient to achieve multiple, high-priority initiatives: 

(1) adequately staff mission essential activities to protect investors; (2) prevent regulatory bottlenecks 

as new oversight regimes become operational and existing ones are streamlined; (3) strengthen 

oversight of market stability; and (4) expand the agency’s information technology (IT) systems to 

better fulfill our mission. 
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Investor Protection 

Investor confidence in the fairness of financial markets is a critical element in capital formation.

This FY 2013 budget request would enable the Commission to continue to direct additional staff 

resources to enhance its investor protection activities.

• Enforcing the Securities Laws: Increasing our ability to identify hidden or emerging threats to 

the markets and act quickly to halt misconduct, minimize investor harm, and maximize the 

deterrent impact of our efforts. As just one example, the Enforcement Division’s Analysis and 

Detection Center will hire specialists with trading and quantitative expertise to analyze trading 

strategies across all types of securities, identifying potentially abusive trading practices. 

• Looking out for Investors: The investment industry is rapidly evolving, with the development 

of new products posing new risks to investors and the increased complexity posing challenges 

to regulators. In FY 2013, the examination program will continue efforts to improve 

compliance inspection and exam coverage of investment advisers and investment company 

complexes. Also, the SEC staff plans to recommend several rule reforms to enhance the 

information provided to mutual fund investors, including proposed amendments to the mutual 

fund shareholder report framework and proposed rules designed to provide variable annuity 

investors with more user-friendly disclosure and improve the delivery of information through 

increased use of the Internet and other electronic means of delivery. 

• Public Company Disclosure: Enhancing disclosure reviews of large and financially significant 

companies improves the information these companies provide to investors, which facilitates 

informed decision making. 

• Municipal Securities Market: Important issues of investor protection, fairness, and efficiency 

also exist in the municipal securities market. In FY 2013, SEC staff expects to make 

recommendations to the Commission for improvements in the municipal securities market 

following a broad-based review of the market. In addition, the Commission is responsible for 

adopting rules to implement a new registration regime for municipal advisors which will 

require approximately 1,000 firms and thousands of individuals to register with the 

Commission.

• Risk and Data Analysis: As the industries we regulate use increasingly sophisticated 

technology and high-frequency trading algorithms, our ability to use statistical and trend 

analyses to identify potentially inappropriate or risky industry practices is essential to help 

inform our enforcement, exam and rulemaking efforts. Under this FY 2013 request, our 

Division of Risk, Strategy and Financial Innovation (RSFI) will continue to develop and 

implement robust analytical models to identify regulated entities with high-risk profiles. 

Further, RSFI will need to process and analyze the massive amounts of new types of data filed 

with the Commission as a result of the Dodd-Frank Act. 

Avoiding Regulatory Bottlenecks

Companies of all sizes need cost-effective access to capital to grow and develop, and any unnecessary 

or superfluous regulations may impede their ability to do that. The FY 2013 budget request would 

enable the SEC to hire new subject matter experts to help make the transition to new rule regimes as 

smooth as possible and to streamline existing processes for market participants, while still maintaining 

essential protections for investors.
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• Over-the-Counter Derivatives: In FY 2013, the Commission’s regulatory responsibilities will 

significantly expand by the addition of the new categories of registered entities (including 

security-based swap execution facilities, security-based swap data repositories, security-based 

swap dealers, and major security-based swap participants); the required regulatory reporting 

and public dissemination of security-based swap data; and the mandatory clearing of 

security-based swaps. To avoid any unintended market disruptions as the new requirements 

become operational, the agency will need additional staff with technical skills and experience 

to process and review on a timely basis requests for interpretations as well as registrations or 

other required approvals. New staff also will be needed to help conduct improved risk-based 

supervision of registered security-based swap dealers and participants, including by using

newly-available data to identify excessive risks or other threats to security-based swap markets 

and investors. 

• SRO Rule Approvals: The Commission is responsible for reviewing and processing selfregulatory organizations’ (SRO) proposed rule changes to evaluate the impact on the protection 

of investors, the public interest, and the national market system. The Dodd-Frank Act imposed 

new procedural requirements with respect to the Commission’s processing of proposed rule 

changes, which has placed further demands on an already complex and resource-intensive 

process. The volume of annual requests has increased by over 80 percent in the last five years, 

with the Commission receiving over 2,000 requests for approval or guidance in 2011. 

The FY 2013 request is intended to provide additional resources so that market participants 

do not face greater uncertainty, costs, and delays in obtaining Commission action on new 

products, trading rules, and platforms. 

• Facilitating Capital Formation for Smaller Companies: Within the past year, the Commission 

formed a new Advisory Committee on Small and Emerging Companies to provide advice on 

potential actions to facilitate small business capital formation and reduce burdens on small 

business in a manner consistent with investor protection. The Division of Corporation Finance 

has also commenced a comprehensive assessment of the Commission’s rules with respect to 

public reporting obligation triggers, the restrictions on general solicitation in private offerings, 

new capital raising strategies for smaller companies, and communications in both private and 

public offerings. In FY 2013, the Division expects to continue to devote significant attention 

to development and consideration of possible rule changes designed to facilitate access to 

capital for smaller companies while at the same time protecting investors. 

• Economic Analysis: As the Commission undertakes additional rulemaking and evaluates 

existing rules, continued access to robust, data-driven economic analyses is necessary to 

develop efficient rules and evaluate the effectiveness of our existing regulations. Under the 

FY 2013 budget request, RSFI would be able to hire additional economists and industry 

experts to support these needs. 

• Providing Interpretive Advice: As the Commission implements the rules required under the 

Dodd-Frank Act, there will be a need for additional staff to respond to the demand from 

companies, investors, and their advisors for interpretive advice about the new rules. 

In FY 2013, for example, we expect a heightened number of interpretive inquiries from 

public companies on new rules relating to listing standards for executive compensation, 

disqualification of felons and other bad actors from certain exempt offerings, and specialized 

disclosure rules with respect to conflict minerals and payments to foreign or U.S. governments 

by resource extraction issuers. 
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• Implementing Private Fund Systemic Risk Information Collection: To address a major 

information deficiency identified during the recent financial crisis, in late FY 2012, private 

fund advisers will begin to file systemic risk information with the Commission on Form PF.

In FY 2012 and in FY 2013 the SEC will be required to devote substantial resources to collect, 

administer, and monitor Form PF data and submissions and to analyze the data from these 

submissions. Additional positions will be required to help filers complete Form PF and 

interpret the form’s requirements; coordinate with other financial regulators with respect to 

data formats, protocols, and technical specifications related to receipt and usage of the data; 

and oversee security of the data, including limiting data access to authorized organizations and 

individuals. 

Safeguarding Market Stability

The expanding size, complexity and rapid growth of the markets presents enormous oversight 

challenges. In FY 2013, the Commission will need to hire specialists in a number of areas to 

strengthen our oversight of the markets, to protect against known risks, and to best enable our markets 

to facilitate economic growth. 

• Clearing: Currently, the average transaction volume cleared and settled by clearing agencies is 

approximately $6.6 trillion a day. The SEC estimates six new clearing entities will register 

with the SEC in FY 2013, totaling 14 active registered clearing agencies. For the eight 

currently active registered clearing agencies, the SEC just has approximately ten examiners 

devoted to them, with limited on-site presence in only three of the eight. Additionally, the 

SEC only has approximately a dozen other staff principally focused on monitoring and 

evaluation of risk management systems used by the existing clearing agencies, and will need to 

expand these efforts to address the expected increase in number of clearing agencies and rule 

filings raising risk management issues. While we anticipate additional strategic hiring in this 

area during FY 2012, this mismatch between the amount of regulated clearing activity and 

staffing will be exacerbated: additional clearing agencies will register with the SEC as a result

of their security-based swap activities, and it is anticipated that certain existing clearing 

agencies will require expanded oversight due to their designation as systemically important by 

the Financial Stability Oversight Council. Accordingly, in the FY 2013 budget request we 

propose to add positions to support these functions.

• Consolidated Audit Trail and Large Trader Reporting: In FY 2012, the Commission will 

consider adoption of a final rule to implement a consolidated system for tracking trading 

activity in the equity markets, which is vital to better understanding market events across 

multiple trading platforms where trading volume has more than doubled in the last five years. 

The consolidated audit trail will enhance the data available to securities regulators for a range 

of critical analytical and regulatory purposes. If it adopts this rule, in FY 2012 and FY 2013 

the Commission will need to monitor the creation of, and ultimately approve, a detailed 

SRO plan for the consolidated audit trail system, and then monitor the development and 

implementation of the system by the SROs and their members. The FY 2013 budget request 

would support this initiative, including the planning efforts necessary to enable us to prepare to 

use this data. In addition, by FY 2013 we expect to be able to collect and analyze enhanced 

data from our recently adopted rule for reporting of certain information by large traders, and 

the FY 2013 budget will support our ability to use this data for more effective market 

oversight. 

• Market structure improvements: In FY 2013, the Commission will continue its efforts to 

monitor and respond to significant market events, such as the severe market disruption of 
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May 6, 2010. In response to market structure issues, the Commission is currently evaluating a 

proposed “limit-up/limit-down” mechanism that would help enhance market stability by 

preventing trades in individual securities from occurring outside of a specified price band.

The Commission also continues to review proposed amendments to the existing market-wide 

circuit breakers filed by the securities exchanges and FINRA that are designed to address 

extraordinary volatility across the securities markets and to make the circuit breakers more 

useful in the fast-paced electronic trading dynamics of today’s markets. 

• Money Market Funds: The Commission is considering structural reforms to money market 

funds to lessen their susceptibility to runs, and to enhance the protections afforded to money 

market fund investors. These structural reforms would supplement the rules limiting the 

portfolio risk in money market funds that the Commission adopted in FY 2010. IM plans to 

expand and improve its monitoring and oversight of money market funds and bring on 

additional staff with industry and computerized data analysis expertise in this highly 

specialized area. 

• Exchange Traded Funds (ETFs): ETFs are rapidly growing, increasingly complex financial 

products whose activities raise significant disclosure, conflict of interest, market structure, and 

macro-prudential issues. In FY 2013 the SEC needs to augment its ability to respond 

effectively to product innovation and potential market stresses in this area. The requested new 

positions, which would include individuals with specialized industry or legal expertise, would 

assist in evaluating novel and complex ETF products, structures, trading mechanisms, and 

index replication methodologies. 

• Cyber Security: Financial entities are recognized as particular targets for cyber attack

attempts. SEC monitoring of cyber security at the various securities exchanges and the 

growing number of trading and clearing platforms will require additional staff to further 

enhance this function in FY 2013. 

Leveraging Information Technology Systems

The growth in the size and complexity of U.S. markets requires that the SEC leverage technology to 

continuously improve its productivity, as well as identify and address the most significant threats to 

investors. The SEC’s planned investments in technology in FY 2013 will address the tremendous 

demand for information technology (IT) development support across the agency, and enable the 

Office of Information Technology (OIT) to dedicate additional resources to new or ongoing projects in 

areas such as data management, integration and analysis; document management; disclosure review; 

and internal accounting and financial reporting. For example, this funding will permit the agency to 

continue work on a new enterprise-class, scalable system that allows staff to search documents across 

cases; and obtain the tools and resources necessary to extract and analyze data about trading market 

abuse; potential fraud in municipal and public pension funds; and insider trading. 

Additionally, the SEC plans to continue multi-year initiatives to improve the enforcement and 

examinations programs’ capabilities to intake and process thousands of tips, complaints, and referrals 

(TCR) received annually, and massive amounts of electronic evidence. Included in the agency plans

for the TCR system is a major component that will provide automated triage by automatically 

receiving new TCRs, determining their characteristics and risks, and assigning the TCRs to an 

SEC organization for resolution—providing SEC staff with the ability to search readily through an 

extensive amount of data that currently must be searched manually. The SEC also plans to make 

additional investments in electronic discovery, the forensics laboratory, and reporting tools. 
7 

SEC Reserve Fund

The Dodd-Frank Act established a Reserve Fund for the SEC and gives the agency authority to use the 

Fund for expenses that are necessary to carry out the agency’s functions. Each year, starting with 

FY 2012, the SEC is required to deposit into the Fund up to $50 million a year in registration fees, 

while the remainder is deposited into the Treasury as general revenue. The balance of the Fund cannot 

exceed $100 million. 

 

For FY 2013, the SEC plans to use $50 million from the Reserve Fund for continued modernization of 

EDGAR and SEC.gov, as well as additional IT projects. Specifically, approximately $26 million 

would be invested in overhauling EDGAR and SEC.gov to create new, modernized systems that will 

improve the agency’s ability to meet Commission requirements; simplify the interchange between 

filers and the SEC to reduce filer burdens; improve data capture by moving to structured formats for 

various SEC forms; and reduce the long-term costs of operating and maintaining the systems. To 

improve data structure and database performance, verify data, and construct a single data repository 

and central staging area for all EDGAR and SEC.gov data, the SEC plans to invest another $9 million.

The remainder of the Reserve Fund in FY 2013 will be used on a number of IT projects, including 

development of Market Oversight and Watch Systems that will provide the SEC with automated 

analytical tools to review and analyze market events, complex trading patterns, and relationships; 

development of fraud analysis and fraud prediction analytical models; and deployment of natural 

speech, text, and word search tools to assist our fraud detection efforts. Additionally, the SEC plans to 

develop analytical environment, databases, and intake systems for market data, mathematical 

algorithms, and financial data. 

Program Details

This section provides additional details of the SEC’s overall FY 2013 request as it relates to certain 

key agency divisions, offices, and programs.

Enforcement

The SEC’s budget request for FY 2013 will support a total of 1,545 positions (1,355 FTE) for the 

agency’s enforcement program, which represents an increase of 191 positions (associated with

56 FTE) above FY 2012 levels. As the SEC’s largest Division, the Enforcement Division investigates 

and brings civil charges in federal district court or in administrative proceedings based on violations of 

the federal securities laws. Successful enforcement actions result in sanctions that deter wrongdoing

and protect investors, both now and in the future; result in penalties and the disgorgement of ill-gotten 

gains that often can be returned to harmed investors; and bars that prevent wrongdoers from working 

in the industry. 

Having completed its structural reforms over the last two years, Enforcement is implementing a host 

of risk-based initiatives designed to increase the Division’s ability to identify hidden or emerging 

threats to the markets and act quickly to halt misconduct and minimize investor harm. These include, 

for example, a focus on: (a) investment advisers serving multiple roles in simultaneously managing 

structured products and investment funds; (b) valuation of difficult-to-value assets in times of market 

stress; (c) analysis of suspicious performance returns posted by hedge fund advisers; (d) analysis of 

suspicious trading patterns and relationships among multiple traders; (e) analysis of accounting and 

financial statement treatment of the offshore operations of U.S. issuers; and (f) new strategies to 

prosecute “gatekeepers,” recidivists and organizers of manipulation in the trading of over-the-counter 

securities. 
8 

Enforcement must be in the forefront of understanding new product offerings and have a global reach, 

in order to properly identify potential violations of the securities laws. As product offerings and 

fraudsters become more sophisticated, the complexity of enforcement cases increases and requires 

more resources to achieve a successful outcome. Compounding the Division’s challenges and 

stretching its resources is the new workload created by the Dodd-Frank Act, such as the triage and 

investigation of tips received under the new Whistleblower Program, and the addition of several new 

classes of registrants added to the Commission’s jurisdiction (i.e., municipal advisors, new categories 

of securities-based swap entities, hedge fund and other private fund advisers). 

 

Compliance Inspections and Examinations

The Office of Compliance Inspections and Examinations (OCIE) administers the SEC’s National 

Examination program, which improves compliance, prevents and detects fraud, monitors risk, and 

informs the Commission’s regulatory policy activities. OCIE uses a risk-based approach to target 

valuable staff and resources toward firms and practices that have the greatest potential risk of 

securities law violations. 

The SEC’s budget request for FY 2013 will support a total of 1,190 positions (990 FTE) for OCIE, 

which represents an increase of 222 positions (associated with 65 FTE) from FY 2012 levels. Of the 

total new positions requested, 90 percent will be allocated to the exam program and the remaining

10 percent will be used for market oversight, clearance and settlement, and a mix of legal and business 

management activities. These additional resources will bolster OCIE’s ability to address the 

expanding universe of entities that are coming under the jurisdiction of the SEC for purposes of 

examinations and inspections. Without these additional positions, the increased complexity of the 

registered firms and the growing disparity between the number of exam staff and the firms could 

compromise the effectiveness and credibility of the Commission’s inspection and examination 

programs. 

The SEC’s request for OCIE is driven by many issues and challenges, including most notably: 

• Exam coverage of the securities market is severely restricted due to current staffing levels:

Each year in the past decade, OCIE, in partnership with the SROs, has examined less than one 

percent of the approximately 160,000 broker-dealer branch offices. In FY 2011, OCIE staffing 

levels only permitted the examination of eight percent of registered advisers. More than one-third 

of advisers have never been examined. Unlike the broker-dealer program, there are no SROs that 

supplement SEC’s efforts in this particular area. 

• Increases in the regulatory population and new complex products and lines of business complicate 

examination oversight: The number of registered investment advisers has grown from nearly 

7,600 advisers managing approximately $21 trillion in assets a decade ago to an estimated

10,000 advisers managing $44 trillion in assets in FY 2013. Simultaneously, the increased use of 

new and complex products such as derivatives and certain structured products, the increasing use 

of technology in operations that facilitate high-frequency and algorithmic trading, and the growth 

of complex “families” of financial services companies with integrated operations that include both 

broker-dealer and investment adviser affiliates require a new level of expertise and analytics to 

design and administer a more robust, complex, and agile examination program. 
9 

Public Company Disclosure

The SEC’s budget request for FY 2013 will support a total of 561 positions (503 FTE) for the 

Division of Corporation Finance, an increase of 46 positions (associated with 13 FTE). 

These resources will be used to enhance disclosure reviews of large and financially significant 

companies; continue to devote significant attention to development and consideration of proposed 

rule changes designed to facilitate access to capital for smaller companies in a manner consistent 

with investor protection; provide interpretive advice on the new rules promulgated under the 

Dodd-Frank Act; and evaluate and, as needed, address trends in the increasingly complex offerings 

of asset-backed securities and other structured financial products. 

Trading and Markets

The Division of Trading and Markets is responsible for establishing and maintaining standards for fair, 

orderly, and efficient markets, as well as supervising exchanges, NRSROs, broker dealers, clearing 

agencies, transfer agents, and certain other major participants in the U.S. securities markets. 

The SEC’s FY 2013 budget request will support a total of 347 positions (310 FTE) for Trading and 

Markets, an increase of 40 positions (associated with 12 FTE). The additional resources will be 

allocated among three areas: (1) supervision of securities markets, including the development of new 

market-related policies to address a broad array of issues in the equity and fixed income markets, as 

well as the performance of new oversight responsibilities in the security-based swap markets, such as 

the review of applications for registration as security-based swap execution facilities; (2) enhanced 

supervision of securities market infrastructure, including in particular clearing agencies that are 

designated by the Financial Stability Oversight Council as systemically important, clearing agencies 

for security-based swaps, non-central counterparty (CCP) clearing agencies, clearing agencies active 

in the international markets, and security-based swap data repositories; and (3) supervision of 

securities firms, including broker-dealers as well as the newly-created categories of security-based 

swap dealers and major security-based swap participants.

Risk, Strategy and Financial Innovation

The Division of Risk, Strategy and Financial Innovation (RSFI) provides sophisticated analysis that 

integrates economic, financial, and legal disciplines with data analytics and quantitative 

methodologies. The Division’s responsibilities cover three broad areas, each based upon rigorous 

quantitative analysis: risk and economic analysis; strategic research; and financial innovation.

Its responsibilities include providing economic analyses of proposed SEC actions and providing 

expertise in analytical approaches and methods to support the agency’s enforcement and examinations 

program. RSFI is involved across the entire range of SEC activities, including policymaking, 

rulemaking, enforcement, examination, data standards and analytics, and other matters.

The SEC’s FY 2013 budget request will support a total of 131 positions (96 FTE) for RSFI, an 

increase of 30 positions (associated with 9 FTE). Approximately 15 of the new positions will be 

devoted to making operational new statutorily mandated financial reforms, with the remainder 

supporting the Division’s ongoing work in the areas of risk and economic analysis, strategic research, 

financial innovation, and development of data analytics and quantitative methodologies. 

Investment Management

The Division of Investment Management oversees the SEC’s efforts to minimize the financial risks to 

investors from fraud, mismanagement, self-dealing, and misleading or incomplete disclosure in the 

$44 trillion investment company and investment adviser segments of the financial services industry, 
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without imposing unnecessary costs and burdens on regulated entities. The SEC’s FY 2013 budget 

request will support a total of 220 positions (184 FTE) for Investment Management, an increase of 

40 positions (associated with 12 FTE).

In FY 2013, new regulations involving advisers to hedge funds and other private funds will become 

operational. Accordingly, the Division will devote substantial resources to implementing and

monitoring the effect of the new rules and to responding to increased exemptive applications and 

increased requests for interpretive and no-action relief by advisers to private funds. The Division will 

devote additional resources to expand and improve its monitoring and oversight of money market 

funds and ETFs, and to collect and monitor systemic risk information filed by private funds.

The Division also will begin to implement a statutorily mandated inspection and examination program 

for investment companies and investment advisers. The examination program will act as a liaison to 

OCIE, support the division’s policy role, and better enable it to understand the impact of regulations in 

the marketplace.

Information Technology

As described above, in FY 2013, the SEC plans to continue its emphasis on leveraging technology to 

streamline operations and bolster the effectiveness of agency programs. The SEC’s budget request for 

FY 2013 will support IT investments of $99 million and provide the resources needed to support a 

larger and more complex technology enterprise. The request allocates 203 positions (169 FTE) for 

OIT, an increase of 20 positions (associated with 6 FTE) over FY 2012 levels. In addition to pursuing 

numerous IT projects, including those outlined above, OIT plans to hire additional experienced 

business analysts and certified project managers to oversee the complex and large-scale projects in the 

agency’s expanding technology portfolio.

 

Training and Development of SEC Staff

The SEC’s FY 2013 budget request also includes a significant investment in training managed by the 

SEC University (SECU). A total training budget of $16.3 million, which represents an increase of 

$8.2 million above the FY 2012 level, would enable the SEC to continue building an effective training 

program to deepen expertise and skills as they relate to core mission responsibilities as well as new 

requirements imposed by the Dodd-Frank Act, such as the examination of hedge funds, oversight of 

SROs, and the examination of credit rating agencies. The planned investment in SECU for FY 2013 

would principally support training and development for employees directly involved in examinations, 

investigations, fraud detection, litigation, and other core mission responsibilities of the SEC.

The SECU also would provide specialized in-depth training concerning changing market conditions, 

analytics and forensics, and the SEC’s response to the Dodd-Frank Act. Finally, the additional 

funding will support training and development related to securities and investor protection, and 

professional and technical education that includes securities training courses, FINRA series training, 

an examiner certification program, financial industry conferences and certifications, and 

organizational partnerships.

Managing Agency Resources

For FY 2013, the SEC is requesting 48 positions (associated with 13 FTE) to ensure that the agency’s 

administrative and support services capabilities, including those of the Offices of Financial 

Management and Human Resources, are in alignment with the requirements of an expanded SEC, 

and to ensure that the agency manages its resources wisely and efficiently. 

The SEC continues to make notable improvements in our organizational structure and business 

processes to affect more efficiency in accomplishing our expanded mission. These efforts include 
11 

more intra-agency coordination as a means to minimize duplication and improve performance. The 

SEC has strengthened efforts to forge collaborative relationships with other federal regulators, the

general public, and our international counterparts. We are undertaking a few key organizational 

changes to better align programs and staff, increase efficiencies, and acquire the expertise needed to 

execute agency priorities.
12 

FTE and Positions by Program

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE Positions FTE Positions FTE Positions

Enforcement 1,236 1,283 1,247 1,354 1,355 1,545

Compliance Inspections and Examinations* 867 911 866 968 990 1,190

Corporation Finance 471 483 469 515 503 561

Trading and Markets** 212 248 239 307 310 347

Investment Management 156 165 157 180 184 220

Risk, Strategy and Financial Innovation 57 70 65 101 96 131

General Counsel*** 143 148 137 149 154 156

Other Program Offices

 Chief Accountant 50 50 47 52 50 56

 Investor Education and Advocacy**** 45 47 44 46 47 51

 International Affairs 37 40 37 46 44 50

 Administrative Law Judges 9 12 11 13 12 13

 Investor Advocate 0 0 3 6 6 6

 Credit Ratings 0 0 17 29 30 35

 Municipal Securities 0 0 3 5 5 5

 Total 141 149 162 197 194 216

Agency Direction and Administrative Support

 Executive Staff 39 42 42 42 42 42

 Public Affairs 6 8 9 10 10 11

 Secretary 29 30 31 31 32 32

 Chief Operating Officer 7 11 10 18 18 21

 Financial Management 69 79 72 84 86 89

 Information Technology 117 155 128 183 169 203

 Human Resources 77 88 85 101 109 131

 Administrative Services 105 100 92 101 94 101

 FOIA/Records Management/Security 48 55 49 62 62 72

 Ethics Counsel 0 0 13 14 15 17

 Minority and Women Inclusion 1 2 3 8 11 13

 Equal Employment Opportunity 5 8 8 9 10 11

 Total 503 578 542 663 658 743

Inspector General 20 23 22 24 25 25

Total FTE and Positions 3,844 4,125 3,946 4,504 4,509 5,180

 Permanent 3,806 4,058 3,906 4,458 4,469 5,134

 Temporary 38 67 40 46 40 46

* Reflects the shift of 20 positions to the Office of Credit Ratings in FY 2012

** Reflects the shift of 3 positions to the Office of Credit Ratings and 4 positions to the Office of Municipal Securities in FY 2012

*** Reflects the shift of 14 positions to the Office of the Ethics Counsel in FY 2012

****Reflects the shift of 3 positions to the Office of the Investor Advocate in FY 2012
13 

Obligations by Object Class

($ in thousands)

FY 2011 FY 2012 FY 2013

Actual* Estimate** Request***

Personnel Compensation & Benefits

 Total Personnel Compensation (11.9) $596,471 $623,759 $734,259

Full-time Permanent (11.1) 587,394 611,974 720,442 

Other than Full-time Permanent (11.3) 2,326 2,390 2,483 

Other Personnel Compensation (11.5) 5,131 6,395 8,217 

Special Personnel Services Payments (11.8) 1,620 3,000 3,117 

 Civilian Personnel Benefits (12.1) 164,113 179,902 208,685 

Subtotal Cost of Salaries $760,584 $803,661 $942,944

Other Expenses

 Benefits for Former Personnel (13.0) 2,195 2,609 2,653 

 Travel and Transportation of Persons (21.0) 7,527 13,570 16,873 

 Transportation of Things (22.0) 43 93 95 

 Rent, Communications & Utilities (23.0) 138,522 157,173 176,671 

Rental Payments to Others (23.2) 127,518 145,830 163,465 

Comm., Utilities, and Misc. Charges (23.3) 11,004 11,343 13,206 

 Printing and Reproduction (24.0) 9,038 9,828 9,995 

 Other Contractual Services (25.0) 227,934 293,739 321,482 

Advisory and Assistance Services (25.1) 46,139 83,455 84,873 

Other Services (25.2) 58,573 59,721 73,684 

Purchase of Goods & Services from 

 Government Accounts (25.3) 24,099 22,590 22,976 

Operation & Maintenance of Facilities (25.4) 8,837 8,805 8,955 

Operation & Maintenance of Equipment (25.7) 90,286 119,168 130,994 

 Supplies and Materials (26.0) 2,514 3,446 3,838 

 Equipment (31.0) 50,720 71,062 81,948 

 Building Alterations (32.0) 13,502 4,600 9,501 

 Claims and Indemnities (42.0) 280 0 0 

 Refunds (44.0) 0 0 0 

 Undistributed (92.0) 0 0 0 

Subtotal Cost of Other Expenses $452,275 $556,120 $623,056

Spending Authority $1,212,859 $1,359,781 $1,566,000

* FY 2011 Actual excludes $2.2M in upward adjustments of prior year obligations that were included in the President's FY 2013 Budget Appendix. 

** FY 2012 Estimate includes $38.8M that was apportioned but not reflected in the President's FY 2013 Budget Appendix.

*** FY 2013 Request includes $100.4M to cover the agency's funding of obligations incurred in prior fiscal years for ongoing multi-year real property contracts.

Average Salary and Grade 1/

FY 2011 FY 2012 FY 2013

Actual Estimate Request

Average SO Salary $226,500 $226,500 $227,630 

Average SK Salary $149,260 $152,990 $159,110 

Average SK Grade 14 14 14

1/ Average salary as of the last day of the fiscal year.
14 

FY 2013 Request by Strategic Goal and Program

($ in thousands)

FY 2013 Request

Change over Change over

FY 2011 FY 2012

Actual* Estimate**

Goal 1 Goal 2 Goal 3 Goal 4

Enforce Effective Facilitate Maximize 

FY 2011 FY 2012 Securities Regulatory Access Use of FY 2013

SEC Program Actual* Estimate** Laws Environ. To Info. Resources Request*** $ % $ %

FY 2011 Actual* $638,972 $130,653 $201,057 $242,177

FY 2012 Estimate** $828,207 $126,341 $193,871 $211,362

Enforcement $415,430 $467,317 $471,827 $10,257 $5,128 $25,642 $512,854 $97,424 23 $45,537 10

Compliance Inspections

 and Examinations 259,937 274,972 296,523 6,376 3,189 12,754 318,842 58,905 23 43,870 16

Corporation Finance 135,862 143,468 3,163 18,978 126,520 9,489 158,150 22,288 16 14,682 10

Trading and Markets 64,575 76,641 19,209 50,553 30,332 1,011 101,105 36,530 57 24,464 32

Investment Management 48,474 51,446 14,994 25,615 19,992 1,874 62,475 14,001 29 11,029 21

Risk, Strategy, and 

Financial Innovation 18,871 24,576 15,654 15,654 1,779 2,491 35,578 16,707 89 11,002 45

General Counsel 44,048 45,298 32,453 8,757 1,546 8,757 51,513 7,465 17 6,215 14

Other Program Offices 43,089 51,724 20,551 16,232 20,431 2,817 60,031 16,942 39 8,307 16

Agency Direction and 

 Administrative Support 175,882 216,993 2,604 8,086 43,582 203,006 257,278 81,396 46 40,285 19

Inspector General 6,691 7,346 82 0 82 8,010 8,174 1,483 22 828 11

Total SEC Funding $1,212,859 $1,359,781 $877,060 $160,508 $252,581 $275,851 $1,566,000 $353,141 29% $206,219 15%

Percent Increase over Prior Year 6% 27% 30% 31%

* FY 2011 Actual excludes $2.2M in upward adjustments of prior year obligations that were included in the President's FY 2013 Budget Appendix.

** FY 2012 Estimate includes $38.8M that was apportioned but not reflected in the President's FY 2013 Budget Appendix.

*** FY 2013 Request includes $100.4M to cover the agency's funding of obligations incurred in prior fiscal years for ongoing multi-year real property contracts.
15 

Summary of Changes

($ in thousands)

FY 2012 FY 2013 Net

Estimate Request Change

Spending Authority $1,359,781 $1,566,000 +$206,219

Full-time Equivalents 3,946 4,509 +563 

Positions 4,504 5,180 +676

Explanation of Changes: Positions FTE Amount

FY 2012 Base Changes

Annualization of staff brought on-board in FY 2012 - - - 367 +70,015 

FY 2013 pay raise, 0.5% effective January 2013 - - - - - - +3,276 

Merit pay increases for eligible staff - - - - - - +30,693 

Increases in space rent and utilities - - - - - - +2,612 

Other non-compensation inflation - - - - - - +6,843 

Other mandatories (FECA) - - - - - - -228 

Subtotal, Base Changes 367 +$113,211

FY 2013 Program Increases

Information Technology Enhancements - - - - - - +14,000 

Employee awards to address OIG Audit Report No. 492 - - - - - - +1,304

Training - - - - - - +8,205

Staffing Increases: +69,499

 Enforcement +191 +56 - - -

 Compliance Inspections & Examinations +222 +65 - - -

 Corporation Finance +46 +13 - - -

 Trading and Markets +40 +12 - - -

 Investment Management +40 +12 - - -

 Risk, Strategy and Financial Innovation +30 +9 - - -

 General Counsel +7 +2 - - -

 Other Program Offices +19 +4 - - -

 Agency Direction & Admin. Support +80 +22 - - -

 Inspector General +1 +1 - - -

Subtotal, Program Increases +676 +196 +$93,008

Total Change +676 +563 +$206,219
16 

Offsetting Collections and Spending Authority

FY 2011 FY 2012 FY 2013

Actual Estimate1 Estimate

Source of Offsetting Collections ($ in thousands)

Securities Transaction Fees under the Securities Exchange Act

of 1934 (Section 31) $1,279,260 $1,321,000 $1,566,000 

Securities Registration Fees under the Securities Act of 1933 

(Section 6(b)), and Merger and Tender Fees under the Securities 

Exchange Act of 1934 (Sections 13(e) and 14(g))2

$361,284 --- ---

Total Offsetting Collections $1,640,544 $1,321,000 $1,566,000

FY 2011 FY 2012 FY 2013

Actual Estimate Request

Spending Authority ($ in thousands)

Current Year Appropriated Offsetting Collections $1,185,000 $1,321,000 $1,566,000

Available Balances from Prior Years 27,859 38,781 0

Total Authority $1,212,859 $1,359,781 $1,566,000

 1 Estimate matches the SEC’s appropriation, as mandated by the Dodd-Frank Act. The estimate is not based on expectations relative to 

economic and market conditions.

2 Under the Dodd-Frank Act, fees collected under Section 6(b) of the 1933 Act and Section 13(e) and 14(g) of the 1934 Act will no longer 

be counted as offsetting collections. Starting in FY 2012, the SEC is required to deposit into the Reserve Fund up to $50 million a year in 

Section 6(b) registration fees, while the remainder is deposited into the Treasury as general revenue.

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2004 

Actual

2005 

Actual

2006 

Actual

2007 

Actual

2008 

Actual

2009 

Actual

2010 

Actual

2011 

Actual

2012 

Target

2013 

Target

$ in millions

Fiscal Year

Offsetting Collections

Section 6(b), 

and Sections 

13(e) & 14(g)

Section 31
17 

Appropriations Language

For necessary expenses for the Securities and Exchange Commission, including services as authorized 

by 5 U.S.C. 3109, the rental of space (to include multiple year leases) in the District of Columbia and 

elsewhere, and not to exceed $3,500 for official reception and representation expenses, 

$1,566,000,000, to remain available until expended; of which not less than $100,345,000 shall be used 

to cover shortfalls in the Commission's funding of obligations incurred in past fiscal years for ongoing 

multi-year real property contracts; and of which not less than $7,067,000 shall be for the Office of 

Inspector General; of which not to exceed $50,000 shall be available for a permanent secretariat for 

the International Organization of Securities Commissions; and of which not to exceed $100,000 shall 

be available for expenses for consultations and meetings hosted by the Commission with foreign 

governmental and other regulatory officials, members of their delegations and staffs to exchange 

views concerning securities matters, such expenses to include necessary logistic and administrative 

expenses and the expenses of Commission staff and foreign invitees in attendance including: 

(1) incidental expenses such as meals; (2) travel and transportation; and (3) related lodging or 

subsistence: Provided, That fees and charges authorized by section 31 of the Securities Exchange Act 

of 1934 (15 U.S.C. 78ee) shall be credited to this account as offsetting collections: Provided further, 

That not to exceed $1,566,000,000 of such offsetting collections shall be available until expended for 

necessary expenses of this account: Provided further, That the total amount appropriated under this 

heading from the general fund for fiscal year 2013 shall be reduced as such offsetting fees are received 

so as to result in a final total fiscal year 2013 appropriation from the general fund estimated at not 

more than $0. 

 
18 

FY 2013 Request by Strategic Goal

The SEC focuses its resources on (1) fostering and enforcing compliance with the federal securities 

laws, (2) establishing an effective regulatory environment, (3) facilitating access to the information 

investors need to make informed investment decisions, and (4) enhancing the agency’s performance 

through effective alignment and management of human, information, and financial capital. 

The budget request for FY 2013 totals $1.566 billion, an increase of $245 million (19 percent) over the 

agency’s FY 2012 appropriation. The FY 2013 budget funds 4,509 full-time equivalents (FTE), an 

increase of 563 FTE (14 percent) over the FY 2012 level, and increases the number of positions by 

676 to a total of 5,180. Chart 1 depicts how the agency plans to allocate its resources in FY 2013 to 

achieve the goals identified in the agency’s strategic plan. 

Chart 1

The additional resources requested for FY 2013 will bolster the SEC’s efforts to achieve each of its 

four strategic goals, and allow the agency to begin overseeing the new markets and market participants 

brought under the SEC's jurisdiction by the Dodd-Frank Act. Resources that directly support fostering 

and enforcing compliance with the securities laws will increase approximately six percent from FY 

2012 to FY 2013; resources utilized in establishing an effective regulatory environment will increase 

by approximately 27 percent compared to FY 2012; and resources that support activities that aim to 

facilitate informed investment decision-making will receive an estimated 31 percent increase. 

The agency is mindful that significantly increasing staffing in the program areas requires a 

commensurate increase in staff and funding for support offices. Additionally, refinements to the 

tracking of resources devoted to the effective management of human, information, and financial 

capital has led to more staff time from the program offices being attributed to this goal in FY 2012 and 

FY 2013. Much of the funding will provide necessary resources for investments in information 

technology (IT) that will support efforts such as implementing requirements contained in the DoddFrank Act; advancing agency-wide data management and integration; and improving the agency’s 

disclosure systems, infrastructure, and management of projects. 

 Goal 1 - Foster and 

enforce compliance 

with the Federal 

securities laws

56% 

 Goal 2 - Establish 

an effective 

regulatory 

environment

11% 

 Goal 3 - Facilitate 

access to the 

information investors 

need to make 

informed investment 

decisions

17% 

 Goal 4 - Enhance 

the Commission's 

performance through 

effective alignment 

and management of 

human, information 

and financial capital

16% 

FY 2013 FTE Request by Strategic Goal (4,509 Total FTE)
19 

The SEC organizes its divisions and offices under 10 major programs that work together to achieve the 

four strategic goals. Chart 2 specifies how the agency plans to allocate its resources to the programs in 

FY 2013. 

 

Chart 2

The following chapters comprise the agency’s performance plan for FY 2013, which explains how the 

SEC plans to use the requested resources to achieve each of its four strategic goals. Each strategic 

goal chapter opens by reviewing the purpose of the goal, followed by information identifying the 

resources allocated to achieving the goal. A general discussion of the FY 2013 performance 

objectives for the specified goal also is included, as well as a presentation of performance measures 

and indicators used to measure progress toward achieving the goal. During FY 2012, the SEC staff 

expects to present for the Commission’s consideration certain revised performance measures to 

provide agency management with improved analytical tools for evaluating program performance in 

support of the agency’s goals and outcomes and the broader effort to more efficiently manage agency 

programs. 

To complement the FY 2013 performance budget, the agency also presents its FY 2013 budget by 

program (beginning on page 51). Each program chapter provides detailed information on program 

priorities, initiatives, and workload figures for the relevant divisions and offices.

 Enforcement

30% 

 Trading and 

Markets

7% 

 Investment 

Management

4% 

 Compliance 

Inspections and 

Examinations

22% 

 Corporation 

Finance

11% 

 General Counsel

4% 

 Inspector General

1% 

 Risk, Strategy, and 

Financial Innovation

2% 

 Other Program 

Offices

4% 

 Agency Direction 

and Administrative 

Support 

15% 

FY 2013 FTE Request by SEC Program (4,509 Total FTE)
20 

Goal 1: Foster and Enforce Compliance with the Federal Securities Laws

In FY 2013, the agency is requesting to add a total of 222 positions (65 FTE) for the national 

examination program and 191 additional positions (56 FTE) for the Enforcement program. The 

additional resources will allow the SEC to continue implementation of various provisions under the 

Dodd-Frank Act, and begin addressing the disparity between the number of exam staff and the 

growing number and complexity of registered firms. Additionally, the Commission will be able to take 

prompt action to halt misconduct, sanction wrongdoers effectively, and return funds to harmed 

investors. Continued technology investments for improved data and information management also 

will be a top priority in FY 2013. In all, the agency plans to devote approximately $878 million and 

2,530 permanent FTE to enforcing compliance with the federal securities laws.

Chart 3

FY 2013 Performance Objectives: Fostering compliance with Federal securities laws is interwoven 

through all of the SEC’s programs and is central to fulfilling the critical mission of the agency. These 

critical investor protection functions contribute to investors’ confidence in our capital markets. 

Through disclosure reviews and examinations of broker-dealers, investment advisers, self-regulatory 

organizations (SROs) and other market participants, the SEC seeks both to detect violations of the 

securities laws and rules, and to foster strong compliance and risk management practices within these 

firms and organizations.

In FY 2013, the SEC will continue to carry out extensive reforms of its national examination and 

Enforcement programs. These reforms include vastly expanding the SEC’s training programs, hiring 

staff with new skill sets, streamlining processes, enhancing information sharing, leveraging the 

knowledge of third parties, continuing to improve the way the SEC handles the thousands of tips the 

agency receives annually, and improving risk-assessment techniques. These and other significant 

efforts contribute to the agency’s objective of creating an enduring structure for improved protection 

of investors and markets.

 Enforcement

50% 

 Trading 

and Markets

2% 

 Investment 

Management

2% 

 Compliance 

Inspections and 

Examination

37% 

 Corporation 

Finance

1% 

 General Counsel

3% 

 Risk, Strategy, 

and Financial 

Innovation

2% 

 Other Program 

Offices

3% 

FY 2013 FTE Request (2,530 Total FTE)
21 

In FY 2013, the national examination program will continue its focus on high risk entities and 

activities. Additional staff will, among other things, improve risk assessment and surveillance 

functions and continue to address the disparity between the number of staff and regulated entities. The 

staff will address timely developments in the securities markets through targeted, sweep, and cause 

examinations and also will implement oversight initiatives related to the Dodd-Frank Act. In FY 

2013, the SEC will continue to promote industry compliance efforts through the Compliance Outreach 

program, and will maintain ongoing efforts to improve its risk assessment and surveillance 

methodologies. 

The Enforcement program plans to build on significant reforms implemented in FY 2011, and will 

work to meet new challenges expected in FY 2013, including additional workload as a result of the 

agency’s expanded authority under the Dodd-Frank Act. Further, the addition of several new classes 

of registrants to the Commission’s jurisdiction (e.g., municipal advisors, new categories of securitiesbased swap entities, hedge fund and other private fund advisers) is likely to result in an increase in the 

number of referrals to the Enforcement program. In order to effectively meet these challenges, the 

Enforcement program is aggressively adopting new methods, initiatives, and organizational reforms to 

ensure the best possible use of available resources to strengthen investor confidence in the U.S. 

financial markets and to send a strong message of deterrence to would-be violators of the securities 

laws.

In FY 2011, as part of a Strategic Plan Addendum process, the Division of Enforcement carefully 

reviewed and updated its performance measurement framework by adding, modifying, or removing 

performance measures developed during the SEC’s FY 2010 – FY 2015 strategic planning process. 

The updates reflect the Division’s efforts to improve the way its performance is measured and to more 

accurately reflect the reporting capability of each performance measure. 

Outcome 1.1: The SEC fosters compliance with the federal securities laws.

Goal 1: Measure 1

Number of new investor education materials designed specifically to help investors protect 

themselves from fraud 

Description: Through its Office of Investor Education and Advocacy (OIEA), and often in conjunction 

with other organizations, the agency issues Investor Alerts and other forms of educational material that 

inform investors about new or emerging types of fraud.

Fiscal Year

FY 

2007

FY

2008

FY

2009

FY 

2010

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Number of education 

materials

Prior-year data not 

available 16 24 24 24 26

Data Source: www.sec.gov and www.investor.gov 
22 

Goal 1: Measure 2

Number of industry outreach and education programs targeted to areas identified as raising 

particular compliance risks

Description: Targeted communication with industry participants on topics shaping the examination 

program is intended to enhance compliance practices and prevent violations before they occur. This 

measure identifies the number of major outreach efforts conducted including the agency’s national and 

regional Compliance Outreach events, published Compliance Alerts, and other educational initiatives.

Fiscal Year

FY

2007 

FY

2008

FY

2009

FY

2010

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Number of major outreach 

efforts

Prior-year data not 

available 6 10 5 12 12

Data Source: Internal tracking, although the events noted above are referenced in the SEC’s website 

Goal 1: Measure 3

Percentage of firms receiving deficiency letters that take corrective action in response to all exam 

findings

Description: At the conclusion of examinations, the staff communicates identified deficiencies to 

registrants in the form of a deficiency letter. Registrants are then given a chance to respond to staff 

findings and often take action to remedy any problems and potential risks. Most often, registrants 

respond that they have corrected the deficiencies and implemented measures to prevent recurrence.

Fiscal Year

FY 

2007

FY 

2008

FY 

2009

FY

2010

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Percentage 94% 93% 94% 90% 90% 93% 93% 93%

Data Source: Super Tracking and Reporting System (STARS) 

Goal 1: Measure 4

Percentage of attendees at the Compliance Outreach program that rated the program as "Useful" 

or "Extremely Useful" in their compliance efforts

Description: The Compliance Outreach program is designed to educate, inform, and alert CCOs and 

other senior management of pertinent information, including about effective compliance controls, that 

may assist them in administering compliance programs within registered firms. Improving compliance 

programs will reduce violative activity, resulting in increased protection for investors. At the conclusion 

of all Compliance Outreach events, CCOs are given the opportunity to rate the usefulness of the 

information provided in assisting them in their compliance efforts.

Fiscal Year

FY 

2007

FY 

2008

FY 

2009

FY

2010

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Percentage 97% 92% 84% 77% 80% 86% 80% 82% 

Data Source: Internal tracking 
23 

Goal 1: Indicator 1

Annual increases or decreases in the number of CCOs attending Compliance Outreach programs

Description: While the raw number of CCOs in the industry may vary depending on factors outside of 

the SEC’s control, the Commission seeks to provide educational programs that are highly valued by 

attendees and their employers. Analyzing changes in participation levels will foster continued 

improvement in both program content and outreach efforts.

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Actual

Percentage Prior-year data not available N/A N/A 

Data Source: N/A 

Outcome 1.2: The SEC promptly detects violations of the federal securities laws.

Goal 1: Measure 5

Percentage of cause and special exams (sweeps) conducted as a result of risk assessment process 

that includes multi-divisional input

Description: As SEC staff expands its use of risk-based methods and has more data available for risk 

analysis, staff anticipates that the percentage volume of exams driven by a more robust risk assessment 

process will increase.

Fiscal Year

FY 

2007

FY 

2008

FY 

2009

FY

2010

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Percentage Prior-year data not available N/A N/A TBD TBD 

Data Source: N/A 

Goal 1: Measure 6 

Percentage of advisers deemed "high risk" examined during the year

Description: To conduct oversight of investment advisers, the staff conducts a risk-based program of 

examinations. Certain advisers are identified as high risk at the beginning of every fiscal year, and then 

inspections are planned on a cyclical basis. The staff’s goal is to inspect high risk advisers at least once 

every three years. Meeting this target will depend upon the SEC having sufficient resources to keep pace

with growth in the industry and the need for examiners to check compliance with evolving regulatory 

requirements.

Fiscal Year

FY 

2007 

FY 

2008 

FY 

2009 

FY

2010 

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Percentage 33% 33% 22% N/A N/A N/A TBD TBD

Data Source: N/A 
24 

Goal 1: Measure 7 

Percentage of investment advisers, investment companies, and broker-dealers examined during 

the year

Description: This measure indicates the number of registrants examined by the SEC or an SRO as a 

percentage of the total number of registrants. This measure includes all types of examinations: risk 

priority examinations, cause inspections to follow up on tips and complaints, limited-scope special 

inspections to probe emerging risk areas, oversight examinations of broker-dealers to test compliance 

and the quality of examinations by the Financial Industry Regulatory Authority (FINRA).

Fiscal Year

FY 

2007

FY

2008

FY 

2009

FY

2010

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Investment 

advisers 13% 14% 10% 9% 11% 8% 9% 11% 

Investment 

companies 20% 23% 29% 10% 11% 13% 13% 14%

Broker-Dealers 

(exams by SEC and 

SROs) 54% 57% 54% 44% 45% 58% 55% 55%

Data Source: Super Tracking and Reporting System (STARS) (IA, IC, and BD SEC data) and SRO 

Databases (BD SRO Data) 

Goal 1: Measure 8 

Percentage of non-sweep and non-cause exams that are concluded within 120 days

Description: The staff conducts examinations each year of investment advisers, investment company 

complexes, transfer agents, and broker-dealers. The staff strives to complete its examinations in the most 

efficient and effective manner. When possible, the staff attempts to conclude its examinations within 

120 days of the end of any field work completed. However, some examinations require significantly 

more time so that potential violations are fully reviewed. To ensure that time pressure does not impair 

quality, the target for this benchmark should not be set too high.

Fiscal Year

FY 

2007

FY 

2008

FY 

2009

FY

2010

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Percentage

Prior-year data not 

available 48% 50% 53% 55% 57%

Data Source: Super Tracking and Reporting System (STARS) 
25 

Goal 1: Indicator 2

Percentage of exams that identify deficiencies, and the percentage that result in a "significant 

finding"

Description: Examiners find a wide range of deficiencies during examinations. Some of the 

deficiencies are more technical in nature, such as failing to include all information that is required to be 

in a record. However, other deficiencies may cause harm to customers or clients of a firm, have a high 

potential to cause harm, or reflect recidivist misconduct. The latter deficiencies are among those 

categorized as “significant.” This measure identifies the percentage of exams by registrant category that 

identified deficiencies, and that resulted in significant deficiency findings.

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 

FY 2011

Actual

Percentage that identify deficiencies Prior-year data not available 72% 82%

Percentage that result in a “significant 

finding” Prior-year data not available 42% 42% 

Data Source: Super Tracking and Reporting System (STARS) 

Goal 1: Indicator 3

Number of cause exams that result from tips

Description: Analysis of a tip can support the request for a cause exam. This indicator would identify 

the volume of SEC cause exams that result from tips collected through outreach efforts.

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Actual

Number of cause exams Prior-year data not available N/A N/A 

Data Source: N/A 
26 

Outcome 1.3: The SEC prosecutes violations of federal securities laws and holds violators 

accountable.

Goal 1: Measure 9 (modified)

Percentage of enforcement actions resolved

Description: This measure assesses the rate at which the SEC’s filed enforcement actions are resolved. 

Specifically, the measure identifies, as to all parties to enforcement actions that were resolved in the 

fiscal year, the percentage against whom the Commission obtained a judgment or order entered on 

consent, a default judgment, a judgment of liability on one or more charges, and/or the imposition of 

monetary or other relief. The Division is currently assessing the value of this metric, and evaluating 

how to incorporate qualitative considerations of the results of the Division’s enforcement actions. 

Fiscal Year

FY 

2007

FY 

2008

FY 

2009

FY 

2010

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Percentage 92% 92% 92% 92% 92% 93% 92% 92%

Data Source: HUB case management and tracking system for the Division of Enforcement 

Goal 1: Measure 10 (modified)

Percentage of first enforcement actions filed within two years

Description: This measure concerns the pace of investigations that lead to the filing of enforcement 

actions. Specifically, this measure captures the rate at which the first enforcement actions arising out of 

an investigation was filed within two years of the opening of the investigation. If the investigation was 

preceded by a matter under inquiry, the measure draws on the date of the opening of the matter under 

inquiry. In conducting investigations, the Enforcement program continually strives to balance the need 

for complete, effective and fair investigations with the need to file enforcement actions in as timely a 

manner as possible. 

Fiscal Year

FY 

2007

FY 

2008

FY 

2009

FY 

2010

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Percentage 54% 62% 70% 67% 70% 61% 64% 65% 

Data Source: HUB case management and tracking system for the Division of Enforcement 

Goal 1: Measure 11 (modified) 

Percentage of debts where either a payment has been made or a collection activity has been 

initiated within 180 days of the due date of the debt

Description: The SEC can seek a wide range of remedies for failure to comply with the securities laws. 

These remedies include civil monetary penalties and disgorgement. When the remedies are imposed by 

the Commission or the federal district court, payments must be made by a certain date. This measure 

identifies the percentage of debts where debtors have made payments or the SEC has initiated a 

collection activity within 180 days of the due date. Such collection activities include, among other 

things, demand letters, negotiation of payment plans, enforcing the payment of the debt through the 

courts, or other judicial remedies.

Fiscal Year

FY 

2007 

FY 

2008 

FY 

2009 

FY 

2010 

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Percentage N/A 88% 90% 86% 90% 91% 92% 92% 

Data Source: Case Activity Tracking System, Phoenix, relevant case files 
27 

Goal 1: Measure 12 (modified)

Percentage of Fair Fund and disgorgement fund plans that have distributed 80 percent of the 

available funds for distribution within twenty four (24) months of the approval of the distribution 

plan

Description: In addition to other types of relief, the Commission may seek orders requiring parties to 

disgorge any money obtained through wrongdoing. The Commission also is empowered to seek civil 

penalties for violations of the securities laws. Where appropriate, the Commission has sought to return 

disgorged funds to harmed investors and, as a result of the Fair Funds provision of the Sarbanes-Oxley 

Act, to combine amounts paid as penalties with disgorged funds, or to create a Fair Fund from penalties 

only, to reduce losses to injured parties in order to maximize funds available for distribution. This 

measure identifies the percentage of distribution plans that reached the majority of funds distributed 

milestone during the fiscal year and within twenty four (24) months of the approval of the distribution 

plan. The distribution plan includes the timeline and procedures required to return the funds to injured 

investors. This reflects Commission-wide efforts to implement plans returning money to investors 

quickly. Any funds not returned to investors are sent to the U.S. Treasury or the Investor Protection 

Fund established pursuant to Section 21F(g) of the Securities Exchange Act of 1934. Neither 

disgorgement nor penalties are used for the Commission’s own expenses.

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Est FY 2013 Est

Percentage Prior-year data not available 72% 78%

Data Source: Distributions Management System 

Goal 1: Measure 13 (modified)

Total amount distributed within the fiscal year, and the number of Fair Funds from which those 

distributions came

Description: In its enforcement actions, the Commission may seek to return funds to harmed investors 

through disgorgement of ill-gotten gains or through the Fair Funds provision of the Sarbanes-Oxley Act. 

This provision permits the Commission to combine amounts paid as penalties with disgorged funds, or 

to create a Fair Fund from penalties only, to reduce losses to injured parties. This reflects the 

Commission’s efforts to return funds to injured investors. This measure identifies the total amount 

distributed within the fiscal year, and the number of fair funds from which those distributions came. 

Due to the variation in reporting timelines established for each individual distribution, reported amounts 

are based on the agency’s best available information. Reported amounts do not include those funds 

distributed through receiverships. Any funds not returned to investors are sent to the U.S. Treasury or 

the Investor Protection Fund established pursuant to Section 21F(g) of the Securities Exchange Act of 

1934. Neither disgorgement nor penalties are used for the Commission’s own expenses.

Fiscal Year

FY

2007

FY

2008

FY 

2009

FY 

2010

FY 

2011

FY 2012 

Est

FY 2013 

Est

Amount Distributed (in 

millions) Prior-year data not available 457 508

Number of Fair Funds Prior-year data not available 63 72

Data Source: Distributions Management System
28 

Goal 1: Measure 14 (new)

Average months between opening a matter under inquiry or an investigation and commencing an 

enforcement action

Description: This measure concerns the pace of investigations that lead to the filing of enforcement 

actions. Specifically, this measure captures average number months between the opening of an 

investigation and the filing of the first enforcement action arising out of that investigation. If the 

investigation was preceded by a matter under inquiry, the measure draws on the date of opening of the 

matter inquiry. In conducting investigations, the enforcement program continually strives to balance the 

need for complete, effective, and fair investigation with the need to file enforcement actions in as timely 

a manner as possible.

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Est FY 2013 Est

Months Prior-year data not available 22 21 20 

Data Source: HUB case management and tracking system for the Division of Enforcement 

Goal 1: Indicator 4 (new)

Percentage of filed enforcement actions reflecting characteristics that present enhanced risk to 

investors and markets, as measured by the nature of the investigation, conduct, parties and 

impact.

Description: This measure assesses the quality of the cases filed by the Enforcement Division. The 

measure focuses on cases filed by the SEC that involve factors reflecting enhanced risk to investors and 

markets. Such cases may involve: (i) those identified through risk analytics and cross-disciplinary 

initiatives to reveal difficult-to-detect or early stage misconduct, thus minimizing investor loss and 

preventing the spread of unlawful conduct and practices; (ii) particularly egregious or widespread 

misconduct and investor harm; (iii) vulnerable victims; (iv) high degree of scienter; (v) involvement of 

individuals occupying substantial positions of authority, or having fiduciary obligations or other special 

responsibilities to investors; (vi) involvement of recidivists; (vii) high amount of investor loss prevented; 

(viii) misconduct that is difficult to detect due to the complexity of products, transactions, and practices; 

(ix) use of innovative investigative or analytical techniques; (x) effective coordination with other law 

enforcement partners; and/or (xi) whether the matter involves markets, transactions or practices 

identified as an enforcement priority, or that advances the programmatic priorities of other SEC 

Divisions or Offices.

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Percentage Prior-year data not available

Data Source: HUB case management and tracking system for the Division of Enforcement 

Goal 1: Indicator 5 (modified)

Number of investigations or inquiries originating from a tip or complaint

Description: Analysis of a tip or complaint can result in the need for further enforcement investigation. 

The indicator identifies the volume of SEC investigations that result from tips and complaints received 

by the SEC.

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Actual

Number of investigations Prior-year data not available 303 349 

Data Source: HUB case management and tracking system for the Division of Enforcement 
29 

Goal 1: Indicator 6 (modified)

SEC investigations in which requests for access to information were granted by the SEC to other 

authorities, such as SROs or other state, federal, and foreign enforcement authorities

Description: The SEC works closely with other regulators and authorities. This measure identifies the 

number of investigations in which the SEC granted one or more authorities access to information 

concerning an investigation during the fiscal year. This may include requests for access to SEC 

investigative files concerning investigations that the SEC continues to pursue, as well as those in which 

the SEC has completed its investigation. 

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Actual

Number of investigations Prior-year data not available 492 586 

Data Source: HUB case management and tracking system for the Division of Enforcement 

Goal 1: Indicator 7 (modified)

Percent of enforcement actions filed that arose out of national priority investigations

Description: The Division of Enforcement conducts many enforcement actions each year that can be 

characterized as high impact and of national priority. High impact or national priority investigations 

include those investigations which are significant for one or more of the following reasons –the matter: 

(i) presents an opportunity to send a particularly strong and effective message of deterrence, including 

with respect to markets, products and transactions that are newly developing, or that are long established 

but which by their nature present limited opportunities to detect wrongdoing and thus to deter 

misconduct; (ii) involves particularly egregious or extensive misconduct; (iii) involves potentially 

widespread and extensive harm to investors; (iv) involves misconduct by persons occupying positions 

of substantial authority or responsibility, or who owe fiduciary or other enhanced duties and obligations 

to a broad group of investors or others; (v) involves potential wrongdoing as prohibited under newlyenacted legislation or regulatory rules; (vi) concerns potential misconduct that occurred in connection 

with products, markets, transactions or practices that pose particularly significant risks for investors or a 

systemically important sector of the market; (vii) involves a substantial number of potential victims 

and/or particularly vulnerable victims; (viii) involves products, markets, transactions or practices that 

the Enforcement Division has identified as priority areas (i.e., conduct relating to the financial crisis; 

fraud in connection with mortgage-related securities; financial fraud involving public companies whose 

stock is widely held; misconduct by investment advisers; and matters involving priorities established by 

particular regional offices or the specialized units); and/or (ix) provides an opportunity to pursue 

priority interests shared by other law enforcement agencies on a coordinated basis.

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Percentage Prior-year data not available 10% 

Data Source: HUB case management and tracking system for the Division of Enforcement 
30 

Goal 1: Indicator 8 (modified)

Criminal actions related to conduct under investigation by the SEC

Description: In some instances, conduct may involve both civil and criminal violations and may be 

investigated by both the SEC and the criminal authorities. This measure identifies the number of 

criminal actions that are related to conduct under investigation by the SEC.

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Actual

Number of criminal 

investigations Prior-year data not available 139 134 

Data Source: HUB case management and tracking system for the Division of Enforcement 

Goal 1: Indicator 9 (modified)

Disgorgement and penalties ordered and the amounts collected

Description: In addition to other types of relief, the SEC may seek orders requiring parties to disgorge 

any money obtained through wrongdoing. The SEC is also empowered to seek civil penalties for 

violations of the securities laws. In some cases, the SEC will seek to obtain large monetary sanctions 

even in instances where the prospects of collecting on a judgment are slight. The rationale for seeking 

monetary relief in these circumstances is that such relief, even when likely uncollectible, might become 

collectible in the future based on the defendant’s changed circumstances, and also because such relief 

can serve to deter others from violating the securities laws. Where appropriate, the SEC has sought to 

return disgorged funds to harmed investors. Funds not returned to investors are sent to the Treasury or 

the Investor Protection Fund established pursuant to Section 21F(g) of the Securities Exchange Act of 

1934. This indicator lists disgorgement and penalties ordered as a result of SEC cases and the amounts 

collected in those actions. This indicator could increase or decrease based on various factors.

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Actual

Ordered amounts (in 

millions) 1,601 1,030 2,442 2,846 $2,806 

Collected amounts (in 

millions) 979 521 1,694 1,775 $1,281 

Data Source: Phoenix Report – “Total Amounts of Disgorgement, ITSA, Remedies Act Penalties and 

Undertakings Ordered and Paid.” 

Goal 1: Indicator 10

Requests from foreign authorities for SEC assistance and SEC requests for assistance from 

foreign authorities

Description: Each year, the SEC makes hundreds of requests for enforcement assistance to foreign 

regulators, while responding to hundreds of such requests from other nations. To facilitate this type of 

assistance, and encourage other countries to enact laws necessary to allow regulators to cooperate with 

their foreign counterparts, the SEC has entered into bilateral information sharing arrangements, as well 

as the Multilateral Memorandum of Understanding, an information-sharing arrangement negotiated 

through the International Organization of Securities Commissions (IOSCO). 

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Actual

Number of Requests from 

foreign authorities 454 414 408 457 492

Number of SEC Requests 556 594 774 605 772 

Data Source: International Program Oversight Database and Business Objects reports 
31 

Goal 2: Establish an Effective Regulatory Environment

The Commission will continue a rulemaking agenda that will protect investors and seek to ensure that 

markets operate fairly. In FY 2013, the Commission aims to continue to strengthen the administration 

of the federal securities laws, implement the new regulatory structure set forth under the Dodd-Frank 

Act, and review other rules that may need updating in light of changing conditions. In FY 2013, the 

agency plans to devote approximately $160.3 million and 479 FTE to achieve this goal. 

Chart 4

FY 2013 Performance Objectives: The Commission’s responsibility is to put the Federal securities 

laws into action by establishing a regulatory environment that fulfills and sustains the agency’s 

mission. In general, rulemaking and policies are designed to improve disclosure, facilitate the flow of 

important information to investors and the public, promote capital formation, improve governance, 

promote high-quality accounting standards, enhance the accountability of financial intermediaries and 

other market participants, and strengthen the structure of the trading markets, among other goals. 

When properly crafted, these rules serve to further the agency’s mission and allow for accurate and 

reliable information to be made available to investors.

In FY 2013, the Commission will work to strengthen the administration of the federal securities laws, 

protect investors, and implement the regulations mandated by the Dodd-Frank Act, including the 

creation of an oversight regime for the over-the-counter derivatives markets and hedge fund advisers, 

as well as enhanced supervision of credit rating agencies and clearinghouses. The Commission also

plans to continue taking steps to ensure a fair market structure while evolving to meet the needs of 

investors in our increasingly complex and innovative markets. The Commission expects to continue 

efforts to strengthen the integrity and fairness of the markets themselves, focusing on market structure 

and potentially abusive trading practices. 

In addition to promulgating its rules and regulations, the SEC will continue to provide guidance on 

rules, respond to inquiries from individuals and companies about whether an activity undertaken in a 

specified manner would violate the securities laws, and issue individual orders granting relief from 

 Enforcement

6% 

 Trading and 

Markets

33% 

 Investment 

Management

16% Compliance 

Inspections and 

Examination

2% 

 Corporation 

Finance

12% 

 General Counsel

8% 

 Risk, Strategy, and 

Financial Innovation

9% 

 Other Program 

Offices

10% 

 Agency Direction 

and Administrative 

Support 

4% 

FY 2013 FTE Request (479 Total FTE) 
32 

provisions of the securities laws when the specific facts indicate that doing so is consistent with the 

protection of investors. These orders can serve as a testing ground for useful innovation and may pave 

the way for rulemaking.

The Commission believes that its rules and regulations should be drafted to enable market participants 

to understand clearly their obligations under the Federal securities laws and to conduct their activities 

in compliance with law. Just as the securities laws require that disclosures be clear and precise, the 

Commission aims to promulgate rules that are clearly written, easily understood, and tailored toward 

specific ends. 

In FY 2013, SEC staff will continue to monitor market developments, conduct outreach to market 

participants, and enhance risk-based methods for maximizing resources throughout the agency. 

Additionally, staff will conduct in-depth studies on financial markets to inform the Commission on the 

efficacy of rules and regulations, either in response to changes in market environment and market 

events, as a result of Congressional mandate, or to review the implementation of rules.

Outcome 2.1: The SEC establishes and maintains a regulatory environment that promotes high 

quality disclosure, financial reporting, and governance, and that prevents abusive practices by 

registrants, financial intermediaries, and other market participants.

Goal 2: Measure 1

Survey on quality of disclosure

Description: Under this metric, the SEC plans to conduct surveys of individual investors to elicit 

feedback on the quality of disclosures and the Commission’s disclosure requirements. The SEC would 

track whether the percentage of respondents answering positively improves over time.

Fiscal Year

FY 

2007 

FY

2008 

FY

2009 

FY 

2010 

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Percentage of positive 

response Prior-year data not available N/A N/A TBD TBD 

Data Source: N/A 

Goal 2: Measure 2

Number of consultations; joint events, reports, or initiatives; and joint examinations and other 

mutual supervisory efforts with SROs and other federal, state, and non-U.S. regulators

Description: This metric gauges how much the SEC is coordinating with other financial regulatory 

agencies within a given fiscal year. Also, as securities markets around the world become increasingly 

integrated and globalized, it is essential that the SEC work frequently and effectively with its partner 

regulators both in the U.S. and abroad.

Fiscal 

Year

FY 

2007

FY 

2008

FY 

2009

FY

2010

FY 2011 

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Number Prior-year data not available N/A N/A TBD TBD

Data Source: N/A 
33 

Goal 2: Measure 3 

Number of non-U.S. regulators trained

Description: This metric shows the reach of the SEC’s technical assistance programs for regulators 

around the world. The SEC conducts these training sessions to assist countries in developing and 

maintaining robust protections for investors and promote cross-border enforcement and supervisory 

assistance. 

Fiscal Year

FY

2007

FY

2008

FY

2009

FY

2010

FY 2011 

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Number of nonU.S. regulatorsPrior-year data not 

available 1,997 2,020 1,765 1,785 1,800

Data Source: International Program Oversight Database and Business Objects reports 

Goal 2: Indicator 1 

Average cost of capital in U.S. relative to the rest of the world

Description: Countries’ cost of capital can vary according to their protections for investors, the strength 

of their disclosure regimes, and the presence of fair, orderly, and efficient markets, among other factors. 

Therefore, although this metric is affected by other economic factors, it can provide some indication of 

the quality of securities regulation in a given country.

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Actual

Average cost of capital Prior-year data not available 10.99% 10.67%

Data Source: Morningstar International Cost of Capital Report (Annual) 

Outcome 2.2: The U.S. capital markets operate in a fair, efficient, transparent, and competitive 

manner, fostering capital formation and useful innovation. 

Goal 2: Measure 4 

Percentage of transaction dollars settled on time each year

Description: This metric measures the efficiency of the U.S. clearance and settlement system for equity 

securities.

Fiscal Year

FY 

2007

FY 

2008

FY 

2009

FY

2010

FY 2011 

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Percentage N/A 99% 99% 99% 99% 99% 99% 99%

Data Source: National Securities Clearing Corporation 

Goal 2: Measure 5 

Average institutional transaction costs for exchange listed stocks on a monthly basis

Description: This performance metric captures the actual cost of trading in large (institutional size) 

transactions.

Fiscal Year

FY

2007

FY

2008

FY 

2009

FY 

2010 

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Average transaction costs Prior-year data not available N/A N/A TBD TBD

Data Source: N/A 
34 

Goal 2: Measure 6 

Percentage of market outages at SROs and electronic communications networks (ECNs) that are 

corrected within targeted timeframes

Description: Market outages reflect problems in the systems underlying the securities markets that 

could have an adverse affect on the markets’ ability to function as required. The SEC assesses the 

reliability and resiliency of these systems to minimize the number and duration of outages. This metric 

gauges how quickly outages are resolved, so that market activity can resume.

Fiscal Year

FY 

2007

FY 

2008

FY 

2009

FY

2010

FY 2011 

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Within 2 hours 81% 84% 87% 74% 60% 88% 60% 60%

Within 4 hours 91% 96% 98% 85% 75% 94% 75% 75%

Within 24 hours 100% 100% 98% 100% 96% 100% 96% 96%

Data Source: ECN outage data is derived from SROs 

Goal 2: Indicator 2 

Average quoted spread for exchange listed stocks on a monthly basis

Description: This indicator gauges the hypothetical cost of trading in small amounts at the quoted 

markets, based solely on published quotations.

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Actual

Average quoted spread

Prior-year data not 

available 1.70 cents 2.52 cents 1.76 cents

Data Source: Thompson Transaction Analytics 

Goal 2: Indicator 3

Average effective spread for exchange listed stocks on a monthly basis

Description: This indicator captures the cost of trading in small amounts based on actual trade prices 

and the quotes at the times of those trades.

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Actual

Average effective spread

Prior-year data not 

available 2.19 cents 2.65 cents 1.72 cents

Data Source: Thompson Transaction Analytics 

Goal 2: Indicator 4

Speed of Execution

Description: This indicator gauges how quickly transactions are executed in the U.S. securities 

markets.

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Actual

Speed of execution

Prior-year data not 

available 1.59 seconds 1.77 seconds 1.02 seconds

Data Source: Thompson Transaction Analytics 
35 

Goal 2: Indicator 5

Average quoted size of exchange listed stocks on a monthly basis

Description: This indicator measures the amount of liquidity visible to the market at the displayed 

quotes.

Fiscal Year FY 2007 FY 2008 FY 2009 Actual FY 2010 Actual FY 2011 Actual

Average quoted size

Prior-year data not 

available 606 shares 687 shares 606 shares

Data Source: Thompson Transaction Analytics 

Goal 2: Indicator 6

Average daily volatility of exchange listed stocks on a monthly basis

Description: This statistic gauges short term price changes, which are an indicator of the risk of 

holding stock.

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Actual

Average daily volatility in 

the S&P 500

Prior-year data 

not available 1.60% 2.69% 1.18% 1.26%

Data Source: Bloomberg 
36 

Outcome 2.3: The SEC adopts and administers rules and regulations that enable market 

participants to understand clearly their obligation under the securities laws.

Goal 2: Measure 7 

Length of time to respond to written requests for no-action letters (NAL), exemptive applications, 

and written interpretive requests

Description: The SEC staff responds to requests for guidance from individuals and companies about 

specific provisions of the federal securities laws. These queries can ask for proper interpretations of the 

securities laws or regulations, or for assurances that no enforcement action will be taken in certain 

circumstances. The staff also reviews applications for exemptions from the securities laws. Written 

responses to such requests for guidance, when provided, generally are publicly available, as are 

applications and related notices and orders, when issued. This measure gauges whether the Divisions of 

Trading and Markets, Investment Management, and Corporation Finance are issuing initial comments on 

these requests on a timely basis.

Fiscal Year

FY 

2007

FY 

2008

FY 

2009

FY

2010

FY 2011 

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Trading and Markets: No-action letters, exemptive applications, and written interpretive requests (combined 

figure)

Percentage 91% 63% 70% 91% 85% 98.5% 85% 85%

Data Source: TM Office of Chief Counsel Electronic Log 

Investment Management

No-action letters and 

interpretive requests 91% 98% 100% 100% 75% 100% 90% 90%

Exemptive 

applications N/A 81% 95% 100% 80% 100% 80% 80%

Data Source: OCC Letter Log, OICR and OIP Applications Tracking Systems (Access), Excel spreadsheet 

Corporation Finance

No-action letters and 

interpretive requests 66% 66% 85% 97% 90% 97% 90% 90%

Shareholder proposals 100% 100% 100% 100% 100% 100% 100% 100%

Data Source: Division No-Action Letter database and Division Shareholder Proposal database 

Goal 2: Measure 8

Survey on whether SEC rules and regulations are clearly understandable

Description: The SEC aims to promote a regulatory environment in which market participants clearly 

understand their obligations. Through this metric, the SEC intends to survey market participants to 

determine whether they believe the Commission’s regulatory requirements are clear.

Fiscal Year

FY 

2007

FY 

2008

FY 

2009

FY

2010

FY 2011 

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Percentage Prior-year data not available N/A N/A TBD TBD

Data Source: N/A 
37 

Goal 2: Measure 9 

Time to complete SEC review of SRO rules that are subject to SEC approval

Description: The SEC reviews SRO rule proposals for consistency with the Exchange Act standards of 

investor protection, fair and orderly operation of the markets and market structure, as well as other 

statutory requirements. This metric gauges how long it takes the SEC to approve a filing after 

publication of notice of the proposal for comment. 

Fiscal Year

FY 

2007

FY 

2008

FY 

2009

FY

2010

FY 2011 

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Within 35 days Prior-year data not available 73% 40% 0% 0% 0%

Within 45 days Prior-year data not available 99% 80% 82% 80% 80%

Data Source: SRO Rule Tracking System (SRTS). Information was extracted from the SRTS data tables into an 

Excel file. The information was then analyzed to determine the applicable population of filings. Simple formulas 

were used to calculate the time from filing after publication of notice to approval of filing. 

Goal 2: Indicator 7

Percentage of SRO rule filings that are submitted for immediate effectiveness

Description: This metric gauges the proportion of SRO rule proposals that can be submitted for 

immediate effectiveness, without Commission approval.

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Actual

Percentage Prior-year data not available 69% 77% 

Data Source: SRO Rule Tracking System (SRTS) 
38 

Goal 3: Facilitate Access to the Information Investors Need to Make Informed 

Investment Decisions

A strong economy and a vibrant securities market rely on investor confidence and the widespread 

availability of relevant information about those securities. The SEC promotes informed investment 

decisions through two main approaches. The first is to require that investors have accurate, adequate,

and timely public access to disclosure materials that are easily understood and analyzed. Secondly, 

the SEC implements a variety of investor education initiatives, aimed at giving investors a better 

understanding of the operations of the nation’s securities markets. In FY 2013, the agency plans to 

devote approximately $253.9 million and 767 FTE to achieve this goal.

Chart 5

FY 2013 Performance Objectives: An educated and informed investor ultimately provides the best 

defense against fraud and costly mistakes. Thus, the Federal securities laws require that corporations, 

investment companies, and other entities provide investors with timely and meaningful information 

about, among other things, their operations and finances. 

As part of its disclosure program, the SEC requires entities to disclose financial and non-financial 

information to the public, providing a common pool of knowledge for all investors to use to judge for 

themselves if a security is a good investment. The Sarbanes-Oxley Act requires the Commission to 

review disclosures made by companies reporting under the 1934 Act at least once every three years 

and more frequently where circumstances warrant. In FY 2013, the SEC expects to continue to meet 

the requirements of the Sarbanes-Oxley Act.

Similarly, SEC rules require that investors have access to certain information about the financial 

intermediaries that they rely upon for investment advice and other services. In FY 2013, SEC staff 

will continue to review the filings that corporations, investment companies, and other entities submit 

to assess whether the disclosures appear adequate and accurate.

 Enforcement

2% Trading and Markets

12% 

 Investment 

Management

8% 

 Compliance 

Inspections and 

Examination

2% 

 Corporation Finance

52% 

 General Counsel

1% 

 Risk, Strategy, and 

Financial Innovation

1% 

 Other Program 

Offices

7% 

 Agency Direction 

and Administrative 

Support 

15% 

FY 2013 FTE Request (767 Total FTE)
39 

The SEC’s Office of Investor Education and Advocacy expects to fund research initiatives, expand the 

office’s outreach to individual investors, and assist with other priorities such as the SEC’s Investor 

Advisory Committee. The Office plans to work collaboratively with other regulators and educational 

organizations to provide investors with information they need to evaluate current and potential 

investments, while also providing agency staff with critical insight about emerging trends and factors 

that shape investor decision making. Staff will continue to collect investor-focused data from a variety 

of sources and use it to track trends in the securities industry and to identify, among other things, 

problematic brokers, firms, and sales practices. This information is expected to help shape the 

agency’s overall approach to risk assessment, and direct internal resources to the most effective 

investor-focused initiatives.

Outcome 3.1: Investors have access to high-quality disclosure materials that are useful to 

investment decision making.

Goal 3: Measure 1 

Percentage of public companies and investment companies with disclosures reviewed each year

Description: The Sarbanes-Oxley Act requires that the SEC review the disclosures of all companies 

and investment company portfolios reporting under the Exchange Act at least once every three years. 

These reviews help improve the information available to investors and may uncover possible violations 

of the securities laws.

Fiscal Year

FY 

2007

FY

2008

FY

2009

FY 

2010

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Division of Corporation Finance

Corporations 36% 39% 40% 44% 33% 48% 33% 33%

Data Source: Electronic, Data Gathering, Analysis, and Retrieval (EDGAR)/Filing Activity Tracking 

System

Division of Investment Management

Investment Company 

Portfolios 38% 36% 35% 35% 33% 33% 33% 33% 

Data Source: Microsoft Office Suite Tools 

Goal 3: Measure 2 

Time to issue initial comments on Securities Act filings

Description: The target of 30 days or less has become a de facto industry standard for the maximum 

time to receive initial comments.

Fiscal Year

FY 

2007 

FY

2008 

FY

2009 

FY 

2010 

FY 2011

Plan

FY 2011

Actual

FY 2012 

Est

FY 2013 

Est

Days

25.5 

days

25.2 

days

25.3 

days

24.1 

days <30 days 24.4 days <30 days <30 days 

Data Source: Electronic, Data Gathering, Analysis, and Retrieval (EDGAR) 
40 

Goal 3: Measure 3 

Percentage of investment company disclosure reviews for which initial comments are completed 

within timeliness goals

Description: For initial registration statements, the SEC’s goal is to issue initial comments within 30 

days after they are filed (60 days for registration statements of insurance product separate accounts and 

related mutual funds). The SEC also aims to comment on post-effective amendments within 45 days and 

preliminary proxy statements within 10 days after they are filed.

Fiscal Year

FY

2007

FY

2008

FY

2009

FY 

2010

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Initial Registration 

Statements 87% 95% 95% 93% 85% 92% 85% 85%

Post-Effective 

Amendments 95% 97% 97% 94% 90% 94% 90% 90%

Preliminary Proxy 

Statements 99% 99% 99% 99% 99% 98% 99% 99%

Data Source: Electronic, Data Gathering, Analysis, and Retrieval (EDGAR) 

Goal 3: Measure 4 

Point of sale “click-through” rate

Description: The point of sale initiative relies on a layered approach that combines point of sale 

disclosure and Internet-based disclosure. This measure would determine how often investors click on 

broker-dealers’ websites to obtain information about broker-dealer compensation and related conflicts of 

interest.

Fiscal Year

FY 

2007 

FY 

2008 

FY 

2009 

FY

2010 

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

“Clickthrough 

rate” Prior-year data not available N/A N/A TBD TBD

Data Source: N/A 
41 

Goal 3: Measure 5 

Access to broker-dealer and investment adviser background checks

Description: Greater availability of professional background information of broker-dealers and their 

employees through the BrokerCheck system will provide investors with the ability to make betterinformed decisions. Investors also have the ability to check the backgrounds of investment advisory 

firms through the SEC’s Investment Adviser Public Disclosure (IAPD) system. This measure would 

gauge the demand for disclosure information about broker-dealers and their employees through the 

BrokerCheck website and about investment advisers through the IAPD.

Fiscal Year

FY 

2007

FY 

2008

FY 

2009

FY

2010

FY 2011 

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Division of Trading and Markets

BrokerCheck 

System Prior-year data not available N/A N/A TBD TBD

Data Source: N/A

Division of Investment Management

IAPD System Prior-year data not available N/A N/A TBD TBD

Data Source: N/A 

Goal 3: Measure 6 

Investor demand for disclosures on municipal securities

Description: Greater availability of market-sensitive information through the Municipal Securities 

Rulemaking Board’s Electronic Municipal Market Access (EMMA) website will provide investors with 

the ability to make better-informed investment decisions and assist market participants in fulfilling their 

disclosure obligations. This measure gauges the demand for disclosure information about municipal 

securities through the EMMA website.

Fiscal Year

FY

2007 

FY

2008 

FY

2009 

FY

2010 

FY 2011 

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Web Site 

Hits Prior-year data not available N/A N/A TBD TBD

Data Source: N/A 

Goal 3: Measure 7 

Satisfaction index for disclosure process

Description: The agency will conduct survey research or focus groups to identify the level of 

satisfaction with disclosure requirements. 

Fiscal Year

FY 

2007

FY

2008

FY

2009

FY 

2010

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Satisfaction index Prior-year data not available NA NA TBD TBD 

Data Source: N/A 
42 

Outcome 3.2: Agency rulemaking and investor education programs are informed by an 

understanding of the wide range of investor needs.

Goal 3: Measure 8 

Number of investors reached, and number of in-person events with specifically targeted 

communities and organizations

Description: The agency has developed an extensive collection of free information to help investors 

understand the basics of investing; the risks and rewards of various products and strategies; the 

importance of diversification; and ways to find information about brokers, advisers, and companies. 

Much of this information is posted on the SEC’s Investor Information Web page, a key tool for 

informing and educating the investing public. In addition, the Office of Investor Education and 

Advocacy (OIEA) publishes hard-copy educational brochures and conducts in-person events. This 

measure seeks to determine the total number of investors reached by the SEC, and assess the 

effectiveness of outreach efforts conducted by OIEA and the regional offices targeted to specific 

investor groups (for example, seniors, military, or other affinity groups). The measure also captures the 

use of various channels to reach investors, such as the SEC webpage, investor.gov, social networking 

sites, outreach programs, or public appearances.

Fiscal Year

FY 

2007

FY

2008

FY

2009

FY 

2010

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Number of Investors 

Reached (millions)

Prior-year data not 

available 17.8 16 14.8 15 17.5

Number of “In-Person” 

Events

Prior-year data not 

available 42 30 48 35 50

Data Source: Microsoft Office Suite Tools 

Goal 3: Measure 9 

Number of investor educational initiatives organized and produced

Description: In partnership with other organizations, the agency will develop a number of educational 

campaigns intended to customize content and maximize its reach to various investor communities. 

Through the use of primary and secondary research including tracking emerging investor concerns and 

complaints, the agency will continue to assess how to best target its efforts to the investing public. This 

measure identifies the number of major investor initiatives undertaken.

Fiscal Year

FY 

2007 

FY

2008 

FY

2009 

FY 

2010 

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Number of 

Initiatives

Prior-year data not 

available 9 10 11 11 11

Data Source: Microsoft Office Suite Tools 
43 

Goal 3: Measure 10 

Timeliness of responses to investor contacts

Description: OIEA serves the tens of thousands of investors each year who contact the SEC with 

investment-related complaints and questions. The staff aims to close out as many new investor 

assistance matters as possible within seven and thirty business days. 

Fiscal Year

FY 

2007

FY

2008

FY

2009

FY 

2010

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Closed within 7 days

Total 82% 78% 70% 72% 80% 67% 70% 70%

Closed within 30 days

Total 94% 88% 90% 93% 90% 92% 90% 90%

Data Source: Internal log using IRIS data 

Goal 3: Measure 11 

Percentage of rules impacting investors that are presented in alternate user-friendly formats

Description: The agency intends to publish explanations of Commission actions in easily 

understandable language, to encourage investor participation and comments on issues materially 

affecting them. The Office of Investor Education and Advocacy also will track emerging concerns and 

trends and then work with the rulemaking divisions and other offices on possible regulatory responses.

The SEC also may use surveys or questionnaires to collect input from investors to assist in assessing 

their views on Commission actions. 

Fiscal Year

FY 

2007 

FY

2008 

FY

2009 

FY 

2010 

FY 2011

Plan

FY 2011 

Actual 

FY 2012 

Est

FY 2013 

Est

Percentage

Prior-year data not 

available 100% 100% 100% 100% 100%

Data Source: Internal log 

Goal 3: Measure 12 

Customer satisfaction with usefulness of investor educational programs and materials

Description: Through the use of focus groups and surveys, the agency will assess the usefulness of 

educational material provided to investors across a variety of channels based upon ease of use, 

appropriateness, and other factors.

Fiscal Year

FY 

2007 

FY

2008 

FY

2009 

FY 

2010 

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Satisfaction 

index Prior-year data not available NA NA TBD TBD 

Data Source: N/A 
44 

Goal 4: Enhance the Commission’s performance through effective alignment and management 

of human, information, and financial capital

The investing public and the securities markets are best served by an efficient, well-managed, and 

agile SEC. In FY 2013, the Office of the Chief Operating Officer (OCOO) along with its five 

operational offices – the Office of Administrative Services; the Office of Financial Management 

(OFM); the Office of FOIA, Records Management, and Security; the Office of Human Resources 

(OHR); and the Office of Information Technology (OIT) – will focus on providing organizational and 

infrastructure improvements necessary to effectively support the increase in the SEC’s workforce 

detailed in this request and advance the Commission’s mission. In addition, the SEC will continue to 

implement the requirements of the GPRA Modernization Act of 2010. Requirements outlined in the

Act will focus on providing agency management with improved information on measurable 

performance results in order to support effective resource management. In FY 2013, the SEC plans to 

devote approximately $273.9 million and 733 permanent FTE to achieve Goal 4. 

Chart 6

FY 2013 Performance Objectives: Given the immense size of the securities markets the SEC regulates, 

the agency’s success in fulfilling its mission is highly dependent upon its ability to continually direct 

its resources towards the most productive uses for investors and the public. The SEC also is extremely 

mindful of its responsibility to maximize the impact of public funds.

The SEC’s FY 2013 request would require OHR to accelerate hiring significantly and increase a range 

of services to attract and maintain a high quality workforce. Also, OHR will provide considerable 

support to divisions and offices in all phases of workforce planning, recruitment/staffing, and 

employee development. OHR will dedicate resources to more broadly define agency-wide actions 

plans and leadership accountability that will help inform hiring, strategic planning, and budget 

planning. 

To meet the demand for new IT project initiatives, ongoing operational support, and continued support 

for IT solutions in the implementation of Congressionally-mandated requirements contained in the 

Dodd-Frank Act, OIT is requesting six additional FTE and an additional $14 million in FY 2013. 

 Enforcement

9% 

 Investment 

Management

1% 

 Compliance 

Inspections and 

Examination

5% Corporation Finance

4% 

 General Counsel

5% 

 Inspector General

3% 

 Other Program 

Offices

1% 

 Agency Direction 

and Administrative 

Support 

72% 

FY 2013 FTE Request (733 Total FTE)
45 

These resources will help OIT develop and support the divisions and offices in data management, 

integration and analysis; document management; disclosure review; and internal accounting and 

financial reporting. 

OFM will complete migration to a federal government Shared Service Provider (SSP) administered by 

the Enterprise Services Center at the Department of Transportation. Through this initiative, the SEC 

will gain functionality, eliminate some manual processes, retain its financial data in a proven security 

environment, and further strengthen internal controls over financial reporting. The migration is 

scheduled for mid-FY 2012, and in FY 2013 OFM will work to optimize its processes under the SSP. 

Outcome 4.1: The SEC maintains a work environment that attracts, engages, and retains a 

technically proficient and diverse workforce that can excel and meet the dynamic challenges of 

market oversight.

Goal 4: Measure 1

Survey of employee engagement 

Description: The SEC strives to maintain a culture in which employees demonstrate a strong personal, 

positive connection with the organization and its mission and strategic goals. This connection, which can 

be called “employee engagement,” can result in higher-quality work, willingness to lead or participate in 

special projects, sharing job knowledge with others, mentoring other staff, or other positive 

contributions to the agency and its work. This index will be drawn from annual survey results and will 

track the agency’s success in improving employee engagement.

Fiscal Year

FY

2007

FY

2008

FY

2009 

FY 

2010 

FY 2011 

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Annual index 

score Prior year data not available 58% 65% 61% 65% 65% 

Data Source: Internal survey 

Goal 4: Measure 2 

Best Places to Work ranking 

Description: This annual ranking of federal government agencies will be used to determine the SEC’s 

overall success in improving our organizational climate.

Fiscal Year

FY

2007

FY

2008

FY

2009 FY 2010

FY 2011 

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Ranking 

Number

Ranked 

#3

Ranked 

#3

Ranked 

#11

Ranked 

#24

 Ranked 

#5

Ranked 

#27

Ranked 

#20

Ranked 

#15

Data Source: Partnership for Public Service “Best Places to Work” Agency Rankings 
46 

Goal 4: Measure 3 

Turnover

Description: The SEC strives to maintain an organizational climate in which high-performing 

employees wish to remain. Although turnover can fluctuate based on a variety of factors, including the 

health of the economy and the number of outside job opportunities available for SEC staff, the agency 

aims to keep its turnover rate relatively low, below 8% per year.

Fiscal Year

FY

2007

FY

2008

FY

2009

FY

2010

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est 

FY 2013 

Est

Percent Turnover 8.8% 6.2% 3.7% 5% <8% 6.4% <8% <8% 

Data Source: The National Business Center at Department of Interior (DOI) 

Goal 4: Measure 4 

Expanding staff expertise

Description: Internal training and hiring programs are designed to help the agency recruit and develop 

its staff so that key skills, industry knowledge, and expertise are maintained. In particular, there is a need 

to hire more economists, trading specialists, and other experts with knowledge of the marketplace and 

both investment and trading practices. Annual agency training goals and hiring practices are focused on 

ensuring staff have the necessary capabilities to address trends in the industry. This measure tracks 

whether certain areas requiring significant training are being addressed. For example, the agency will 

monitor the percentage of staff that has received or maintained significant relevant training in fraud 

detection as measured by achieving the status of a Certified Fraud Examiner, Chartered Financial 

Analyst, Series 7, or other relevant industry designations.

Fiscal Year

FY 

2007

FY

2008

FY

2009

FY

2010

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est 

FY 2013 

Est

Percent of staff with 

industry 

designations

Prior year data not 

available N/A N/A 9% 15% 20% 

Data Source: Association of Certified Fraud Examiners, Chartered Financial Analyst Institute 

Goal 4: Measure 5 

Size of competency gaps

Description: Key competencies will be rated as part of the SEC’s performance management process. 

Once the SEC has implemented a technology system to support the performance management program, 

the agency will assess its baseline competency gaps annually and work to bring them down over time.

Fiscal Year

FY

2007

FY

2008

FY

2009

FY

2010

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est 

FY 2013 

Est

Percentage reduction for the 

size of competency gaps

Prior-year data not 

available N/A 10% N/A 10% 10%

Data Source: N/A 
47 

Goal 4: Measure 6 

Number of diversity-related partnerships/alliances

Description: Increased numbers of diversity-related partnerships or alliances with professional 

associations and educational organizations provide opportunities to educate students about the SEC’s 

work and to recruit career professionals from all segments of society. The SEC will track the number of 

partnerships and/or alliances with diverse professional associations and educational organizations.

Fiscal Year

FY 

2007

FY

2008

FY

2009

FY 

2010

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Number of 

partnerships/alliances

Prior-year data not 

available 2 5 10 12 15

Data Source: Office of Minority Women and Inclusion Internal Records and Section 342 of DFA 

Goal 4: Measure 7 

Survey feedback on the quality of the SEC’s performance management program

Description: The SEC will construct an index from survey results to determine the extent to which 

managers and other employees find the performance management program valuable, credible, 

transparent, and fair. 

Fiscal Year

FY

2007

FY

2008

FY

2009

FY

2010

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est 

FY 2013 

Est

Percentage of positive 

survey responses

Prior-year data not 

available N/A 65% 53% 65% 65%

Data Source: 2011 Employee Viewpoint Survey results to questions related to Performance 

Management 

 

Outcome 4.2: The SEC retains a diverse team of world-class leaders who provide motivation 

and strategic direction to the SEC workforce.

Goal 4: Measure 8 

Quality of Hire

Description: Data related to each new hire will be gathered from either the immediate supervisor or the 

selecting official, as appropriate. Data will be gathered three months after entry on board. This early 

assessment will not only inform the agency’s selection system, but will provide an opportunity to 

address quickly any developmental needs or performance issues.

Fiscal Year

FY 

2007 

FY

2008

FY

2009

FY

2010

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est 

FY 2013 

Est

Percentage of hires 

rated at least four on 

a five-point scale

Prior-year data not 

available N/A 75% N/A TBD TBD

Data Source: N/A 
48 

Goal 4: Measure 9 

Leadership Competency Gaps

Description: A 360-degree feedback survey will be conducted across all leadership ranks. This will 

provide an SEC-wide score on each competency measured in the survey. The gap will be determined by 

subtracting the obtained scores from expected proficiency levels on key competencies. Progress will be 

determined by comparing this baseline to scores obtained from subsequent administrations of the survey.

Fiscal Year

FY

2007

FY

2008

FY

2009

FY

2010

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est 

FY 2013 

Est

Average percentage of 

gaps reduced in each 

survey

Prior-year data not 

available N/A 10% N/A TBD TBD

Data Source: N/A 

Goal 4: Measure 10 

Satisfaction with Leadership Development Program

Description: After each major developmental event participants will complete a survey of items related 

to key training outcomes. Responses to these items will be compiled to create a composite score.

Fiscal Year

FY

2007 

FY

2008 

FY

2009 

FY

2010 

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Average score on a 

five-point scale

Prior-year data not 

available 4.46 4.5 4.49 4.5 4.5

Data Source: Successful Leaders Program Evaluations 

 

Outcome 4.3: Information within and available to the SEC becomes a Commission-wide shared 

resource, appropriately protected, that enables a collaborative and knowledge-based working 

environment.

Goal 4: Measure 11

Percentage of SEC data sources accessible through a virtual data warehouse, and milestones 

achieved towards the creation of a robust information management program

Description: The SEC intends to reform its information management processes, so that data can be 

more easily accessed, shared, and analyzed across the organization. This metric will display the 

percentage of SEC data sources accessible for search and analysis through a virtual data warehouse. In 

addition, the SEC will track its success in achieving relevant milestones over the course of this multiyear effort. These milestones include establishing a formal information management program in 2010, 

completing an information catalog by 2011, providing capabilities to support analysis of information by 

2012, and developing a capability that allows integration of business operations data for management, 

reporting and analysis by 2013.

Fiscal Year

FY 

2007 

FY

2008 

FY

2009 

FY 

2010 

FY 2011

Plan FY 2011 Actual FY 2012 Est FY 2013 Est

Percentage

Prior-year data not 

available N/A N/A

Data 

Warehouse

/Administrative 

data and 

reporting 

requirements 

identified

Data analysis, 

integration, 

risk 

assessment, 

and 

infrastructure 

optimization

Data 

Warehouse 

Commissionwide

Data Source: N/A 
49 

Goal 4: Measure 12 

Deployment of document management and workflow tools

Description: This metric will present the SEC’s success in applying document management and 

workflow tools to the Commission’s mission critical business functions. Over time, the SEC aims to 

deploy these tools for enforcement case management, the agency’s processes for handling disgorgement 

and penalties, examination management, management of Commission actions, and rulemaking.

Fiscal 

Year

FY 

2007

FY

2008

FY

2009

FY 

2010

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est FY 2013 Est

Business 

Functions 

Served

Prior-year data not 

available

Enforcement 

& 

Examination

Tips, 

Complaints 

and 

Referrals 

Commission

-wide

Tips, 

Complaints 

and 

Referrals 

Commissio

n-wide

National 

Exam 

Program

Deploy 

knowledge 

management 

system and 

data sharing 

across 

applications

Data Source: Data sources will be available in FY 2012 

Goal 4: Measure 13 

Time to process evidentiary material for enforcement investigations

Description: The SEC aims to improve its ability to process evidentiary material gathered during the 

course of its enforcement investigations, and enhance the agency’s document storage, organization, and 

analytical capabilities. This metric will gauge whether these efforts succeed in reducing the time 

required to process evidentiary material, so it can be analyzed by enforcement staff. 

Fiscal Year

FY 

2007

FY

2008

FY

2009

FY 

2010

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Number of days

Prior-year data not 

available N/A N/A N/A TBD TBD

Data Source: Data sources will be available in FY 2012 

Goal 4: Measure 14

System Availability

Description: The SEC aims to enhance its computing infrastructure to eliminate down time if systems 

at one site fail, among other objectives. This metric will capture the percentage of systems and 

applications that can fail over within 4 hours. In addition, the SEC will track the percentage of its 

systems that have been virtualized, further reducing down time and increasing their accessibility from 

alternative locations.

Fiscal Year

FY 

2007

FY

2008

FY

2009

FY 

2010

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Systems Availability

Prior-year data not 

available 99.97% 99.3% 99.94% 99% 99% 

Percentage Fail Over 

Within 4 Hours

Prior-year data not 

available N/A 99% 99% 99% 99%

Systems Virtualized

Prior-year data not 

available 22% 25% 38% 90% 95%

Data Source: OIT NOC – automated network monitoring tools 
50 

Outcome 4.4: Resource decisions and operations reflect sound financial and risk management 

principles. 

Goal 4: Measure 15 

Milestones achieved towards establishment of a robust data management program

Description: A business process improvement effort will be initiated to identify enhancements needed 

to create a robust data management program over the next five years. This metric will gauge the 

agency’s success in establishing an integrated enterprise data management, reporting, and analysis 

capability for mission and back office data.

Fiscal 

Year

FY 

2007 

FY

2008 

FY

2009 

FY 

2010 

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Milestone 

Achieved

Prior-year data not 

available N/A

Administrative 

data and 

reporting 

requirements 

identified

Administrative 

data and 

reporting 

requirements 

identified

TBD TBD

Data Source: Data sources will be available in FY 2012 

Goal 4: Measure 16 

Financial systems integration

Description: As part of the SEC’s effort to integrate its financial systems, the agency will measure the 

percentage of secondary systems that are fully interfaced with the core financial system, in compliance 

with applicable standards. 

Fiscal Year

FY 

2007

FY

2008

FY

2009

FY 

2010

FY 2011

Plan

FY 2011 

Actual

FY 2012 

Est

FY 2013 

Est

Percentage

Prior-year data not 

available N/A 17% N/A TBD TBD

Data Source: Data sources will be available in FY 2012 

Goal 4: Measure 17

Financial audit results

Description: Under the Accountability of Taxpayer Dollars Act of 2002, the agency is required to meet 

all proprietary and budgetary accounting guidelines for federal agencies and to undergo annual audits. 

The SEC’s audits are conducted by the Government Accountability Office.

Fiscal Year

FY 

2007

FY 

2008

FY

2009

FY 

2010

FY 2011

Plan

FY 2011

Actual

FY 2012

Est

FY 2013

Est

Unqualified Opinion Yes Yes Yes Yes Yes Yes Yes Yes

Material Weaknesses 1 0 1 2 0 0 0 0

Significant 

Deficiency 3 3 6 0 0 4 0 0 

Data Source: GAO FY 2011 SEC Financial Audit Report
51 

Division of Enforcement

Executive Summary

FY 2011 FY 2012 FY 2013

Actual Estimate Request

 

FTE: Headquarters 458 467 514

 Regions 778 780 841

 Total 1,236 1,247 1,355

 

Cost: Salaries and Benefits ($000) $252,386 $261,346 $291,237 

 Non-Personnel Expenses ($000) 163,044 205,971 221,617 

Total Costs ($000) $415,430 $467,317 $512,854 

FY 2013 FTE by SEC Strategic Goal

Goal 1 Goal 2 Goal 3 Goal 4

Foster and Enforce Establish an 

Compliance Effective Facilitate Access Align and 

with Federal Regulatory To Information Manage 

Securities Laws Environment Investors Need Resources

1,247 27 14 67

A vigorous enforcement program is at the heart of the agency’s efforts to protect investors and critical 

to the investing public’s confidence in the integrity of the markets. The Enforcement Division 

investigates and brings civil charges in federal district court or in administrative proceedings for

violations of the federal securities laws. Successful enforcement actions result in sanctions that deter 

wrongdoing and protect investors, both now and in the future; result in penalties and the disgorgement 

of ill-gotten gains that often can be returned to harmed investors; and bars that prevent wrongdoers 

from working in the industry.

Over the last two years, the Enforcement Division carried out the most significant structural reforms of 

the enforcement program since its inception in 1972—reforms designed to maximize resources and 

enable the SEC to more effectively combat securities fraud. To build on this transformation, meet the

challenges of a rapidly-growing case load, and maintain an effective investigative capacity and 

deterrent presence, the Division is requesting 191 additional positions (associated with 56 FTE) in 

FY 2013. These additional resources will support the Enforcement program’s current and future 

initiatives by:

• Expanding and focusing the investigative function;

• Strengthening the litigation function; 

• Bolstering staffing for the Office of Market Intelligence;

• Expanding Enforcement’s information technology expertise and staffing; and

• Bolstering staffing for the delinquent debt collection and distributions functions.
52 

Office of Compliance Inspections and Examinations

Executive Summary

FY 2011 FY 2012 FY 2013

Actual Estimate Request

 

FTE: Headquarters 149 144 154

 Regions 718 722 836

 Total 867 866 990

Cost: Salaries and Benefits ($000) $174,803 $178,778 $211,099 

 Non-Personnel Expenses ($000) 85,134 96,194 107,743 

Total Costs ($000) $259,937 $274,972 $318,842 

FY 2013 FTE by SEC Strategic Goal

Goal 1 Goal 2 Goal 3 Goal 4

Foster and Enforce Establish an

Compliance Effective Facilitate Access Align and 

with Federal Regulatory To Information Manage 

Securities Laws Environment Investors Need Resources

921 20 10 39 

The Office of Compliance Inspections and Examinations (OCIE) conducts the SEC’s national 

examination program. Staff examinations are designed to: (1) improve compliance; (2) prevent and 

detect fraud; (3) monitor risk; and (4) inform regulatory policy. To this end, the results of OCIE’s 

examinations are utilized by the Divisions of Investment Management and Trading and Markets to 

inform rule-making initiatives, by the Division of Risk, Strategy and Financial Innovation to identify 

and monitor risks, and by the Division of Enforcement to pursue misconduct.

In FY 2013, additional resources are critical in order for OCIE to meet its objectives and fulfill the 

agency’s mission. In particular, resources are needed to continue implementation of certain provisions 

of the Dodd-Frank Act; address the disparity between the number of exam staff and the growing 

number and complexity of registered firms; and more effectively risk target, monitor, and examine 

market participants. OCIE also will further enhance training and expertise of examiners in fraud 

detection, new products, trading strategies and other issues, and will continue ongoing efforts to 

improve its risk assessment and surveillance methodologies. Additionally in FY 2013, OCIE will 

continue to promote industry compliance efforts through the Compliance Outreach program. 

The office requests an additional 222 positions (associated with 65 FTE) to accomplish these goals.
53 

Division of Corporation Finance

Executive Summary

FY 2011 FY 2012 FY 2013

Actual Estimate Request

 

FTE: Headquarters 471 469 503

Cost: Salaries and Benefits ($000) $94,014 $95,888 $105,997 

 Non-Personnel Expenses ($000) 41,848 47,580 52,153 

Total Costs ($000) $135,862 $143,468 $158,150 

FY 2013 FTE by SEC Strategic Goal

Goal 1 Goal 2 Goal 3 Goal 4

Foster and Enforce Establish an 

Compliance Effective Facilitate Access Align and 

with Federal Regulatory To Information Manage 

Securities Laws Environment Investors Need Resources

10 60 403 30

In support of the Commission’s mission to protect investors, maintain fair, orderly, and efficient 

markets, and facilitate capital formation, the Division of Corporation Finance (CF) seeks to ensure

that investors are provided with material information in order to make informed investment decisions, 

both when a company initially offers its securities to the public and on a ongoing basis as it continues 

to give information to the marketplace. The Division also provides interpretive assistance to 

companies on SEC rules and forms and makes recommendations to the Commission relating to new 

rules and revisions to existing rules. Continuing investor interest regarding the quality of financial 

reporting and significant changes in disclosure and other requirements applicable to reporting 

companies have contributed to a changing regulatory environment affecting the securities markets. 

In FY 2013, the Division plans to continue its multi-year effort to enhance disclosure reviews of large 

and financially significant companies; continue to prepare rules to implement the Dodd-Frank Act; 

review the offering rules to consider their impact on small business capital formation and recommend 

changes to the Commission as appropriate; and evaluate trends in the increasingly complex offerings 

of asset-backed securities and other structured financial products. The Division also will continue to 

focus on exceeding the review cycle requirements of the Sarbanes-Oxley Act and process in a timely 

manner all requests for confidential treatment associated with filings. 

The Division requests 46 additional positions (13 FTE) in FY 2013 to meet its goals.
54 

Division of Trading and Markets

Executive Summary

FY 2011 FY 2012 FY 2013

Actual Estimate Request

 

FTE: Headquarters 212 239 310

 

Cost: Salaries and Benefits ($000) $43,920 $50,804 $67,623 

 Non-Personnel Expenses ($000) 20,655 25,837 33,482 

Total Costs ($000) $64,575 $76,641 $101,105 

FY 2013 FTE by SEC Strategic Goal

Goal 1 Goal 2 Goal 3 Goal 4

Foster and Enforce Establish an

Compliance Effective Facilitate Access Align and 

with Federal Regulatory To Information Manage 

Securities Laws Environment Investors Need Resources

59 155 93 3

The mission of the Division of Trading and Markets (TM) is to establish and maintain standards for 

fair, orderly, and efficient markets, while fostering investor protection and confidence in the markets. 

In furtherance of this mission, TM is requesting 40 additional positions (associated with 12 FTE) in 

FY 2013. These additional resources will enable the Division to continue to assume the substantial 

new responsibilities required of it under the Dodd-Frank Wall Street Reform and Consumer Protection 

Act (Dodd-Frank Act), while allowing it to sustain and enhance its existing supervision of securities 

markets, securities market infrastructure, and securities firms.
55 

Division of Investment Management

Executive Summary

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Headquarters 156 157 184

Cost: Salaries and Benefits ($000) $33,453 $34,183 $40,764 

 Non-Personnel Expenses ($000) 15,021 17,263 21,711 

Total Costs ($000) $48,474 $51,446 $62,475 

FY 2013 FTE by SEC Strategic Goal

Goal 1 Goal 2 Goal 3 Goal 4

Foster and Enforce Establish an 

Compliance Effective Facilitate Access Align and 

with Federal Regulatory To Information Manage 

Securities Laws Environment Investors Need Resources

44 76 59 5

The mission of the investment management program is to protect investors and facilitate capital 

formation. Its work seeks to minimize the financial risks to investors from fraud, mismanagement, 

self-dealing, and misleading or incomplete disclosure in the investment company and investment 

adviser segments of the financial services industry, without imposing unnecessary costs and burdens 

on regulated entities.

A major milestone will occur in late FY 2012 when private fund advisers begin to file systemic risk 

information with the SEC on Form PF. SEC will collect this information and, as required by the 

Dodd-Frank Act, share it on a confidential basis with other financial regulatory agencies and the 

Financial Stability Oversight Council (FSOC). In FY 2012 and FY 2013, the Division of Investment 

Management (IM) will devote substantial resources to collect, administer, and monitor Form PF data 

and submissions. IM will help filers complete Form PF and interpret the form’s requirements; 

coordinate with other financial regulators with respect to data formats, protocols, and technical 

specifications related to receipt and usage of the data; and oversee security of the data, including 

limiting data access to authorized organizations and individuals. In FY 2013, IM will also continue to 

recommend the proposal and adoption of rules to implement provisions of the Dodd-Frank Act and 

assist the public and monitor the effect of SEC implementation of final rules under the legislation.

IM also will recommend that the Commission propose structural reforms to money market funds to

lessen their susceptibility to runs and enhance the protections afforded to money market fund investors. 

These structural reforms would supplement the rules limiting the portfolio risk in money market funds 

that the Commission adopted in FY 2010. IM plans to expand and improve its monitoring and oversight 

of money market funds and bring on additional staff with industry and computerized data analysis 

expertise in this highly specialized area. As required by the Dodd-Frank Act, IM will build capacity for 

a program to conduct compliance inspections and examinations of investment companies and investment 

advisers in FY 2012 and begin to implement the program in FY 2013.

To accomplish these goals, IM requests 40 additional positions (associated with 12 FTE) in FY 2013.
56 

Division of Risk, Strategy and Financial Innovation

Executive Summary

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Headquarters 57 65 96

Cost: Salaries and Benefits ($000) $13,496 $16,099 $23,229 

 Non-Personnel Expenses ($000) 5,375 8,477 12,349 

Total Costs ($000) $18,871 $24,576 $35,578 

FY 2013 FTE by SEC Strategic Goal

Goal 1 Goal 2 Goal 3 Goal 4

Foster and Enforce Establish an

Compliance Effective Facilitate Access Align and 

with Federal Regulatory To Information Manage 

Securities Laws Environment Investors Need Resources

42 42 5 7

The Division of Risk, Strategy and Financial Innovation (RSFI) provides sophisticated analysis that 

integrates economic, financial, and legal disciplines with data analytics and quantitative 

methodologies. Its responsibilities include providing economic analyses of proposed Commission 

actions, and providing expertise in analytical approaches and methods in support of the agency’s 

enforcement and examinations program. RSFI is involved across the entire range of SEC activities, 

including policymaking, rulemaking, enforcement, examination, and data standards and analytics.

RSFI requests an additional 30 positions (associated with 9 FTE) in FY 2013. Approximately half of 

the increased resource allocation is projected to be devoted towards supporting implementation and 

on-going activities mandated by the Dodd-Frank Act, while the remainder will support the Division’s 

operations and on-going tasks of risk and economic analysis, strategic research, financial innovation, 

and development of data analytics and quantitative methodologies—much of which has been diverted 

or deferred in order to meet the requirements of the Dodd-Frank Act.

RSFI will continue to monitor market developments, conduct outreach to market participants, and 

enhance risk-based methods for maximizing resources throughout the SEC. Staffing increases will 

allow the Division to better support the Office of Compliance Inspections and Examinations (OCIE) in 

its efforts to improve systems for surveillance, risk-based targeting of examinations, and data analysis 

capabilities. The additional personnel will also provide economic and statistical analysis that 

identifies potential violations and supports the prosecution of violations in conjunction with the 

Division of Enforcement. Others will provide support for the interactive data program and expanding 

the risk assessment program. Additionally, as a part of its on-going responsibilities as business system 

owner of the Tips, Complaints, and Referrals (TCR) system, the Division will continue to monitor 

TCR submissions and provide analytic reports to the TCR Executive Steering Committee. 
57 

Office of the General Counsel

Executive Summary

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Headquarters 132 126 143

 Regions 11 11 11

 Total 143 137 154

Cost: Salaries and Benefits ($000) $31,118 $30,849 $35,742 

 Non-Personnel Expenses ($000) 12,930 14,449 15,771 

Total Costs ($000) $44,048 $45,298 $51,513 

FY 2013 FTE by SEC Strategic Goal

Goal 1 Goal 2 Goal 3 Goal 4

Foster and Enforce Establish an

Compliance Effective Facilitate Access Align and 

with Federal Regulatory To Information Manage 

Securities Laws Environment Investors Need Resources

97 26 5 26 

The General Counsel serves as the chief legal officer of the Commission and provides independent 

legal analysis and advice to the Chairman, Commissioners, and operating divisions on all aspects of 

the Commission’s activities. The General Counsel also defends the Commission in federal district 

courts, represents the Commission in all appellate matters and amicus curiae filings, and oversees the 

SEC’s bankruptcy program.

In FY 2013, the Office of the General Counsel (OGC) anticipates continued work on legislative 

initiatives to reform the existing regulatory structure for the securities markets and the financial 

services industry. An increased staff of experienced attorneys will be needed to handle complex 

agency and securities law issues which will result from regulatory reform and address legal challenges 

to rulemakings. OGC also expects to provide technical assistance to Congress and other financial 

regulatory agencies on numerous legislative initiatives and other matters. The requested increase in

the size of the enforcement staff is expected to lead to an increase in the number of enforcement 

matters that will reach adjudication as appeals, as well as an increase in the number and time 

sensitivity of the enforcement actions analyzed by OGC staff. 

The office is requesting 7 additional positions (associated with 2 FTE) in FY 2013 to address 

expanding requirements and additional workload generated by increasing staffing levels across

the agency.
58 

Other Program Offices

 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Headquarters

 Office of Chief Accountant 50 47 50

 Office of Investor Education and Advocacy 45 44 47

 Office of International Affairs 37 37 44

 Office of Administrative Law Judges 9 11 12

 Office of the Investor Advocate 0 3 6

 Office of Credit Ratings 0 17 30

 Office of Municipal Securities 0 3 5

 Total 141 162 194

Cost: Salaries and Benefits ($000) $28,802 $33,440 $39,171 

 Non-Personnel Expenses ($000) 14,287 18,284 20,860 

Total Costs ($000) $43,089 $51,724 $60,031 

This section of the SEC’s request includes chapters that describe the responsibilities and activities of 

the agency’s smaller program offices, including:

Office of Chief Accountant: Establishes accounting and auditing policy and works to improve the 

professional performance of public company auditors to ensure that financial statements used for 

investment decisions are presented fairly and have credibility.

Office of Investor Education and Advocacy: Serves investors who complain to the SEC about 

investment fraud or the mishandling of their investments by securities professionals, ensures the views 

of retail investors inform the Commission’s regulatory policies and disclosure programs, and works to 

improve investors’ financial literacy.

Office of International Affairs: Advances international regulatory and enforcement cooperation, 

promotes converged high regulatory standards worldwide, and facilitates technical assistance 

programs in foreign countries. 

Office of Administrative Law Judges: Adjudicates allegations of securities law violations.

Office of the Investor Advocate: Provides assistance to investors in resolving significant problems 

they may have with the SEC or with self-regulatory organizations (SROs), and identifying areas in 

which investors would benefit from changes to federal laws or to SEC regulations or SRO rules.

Office of Credit Ratings: Administers the rules of the Commission with respect to the practices of 

nationally recognized statistical rating organizations (NRSROs) in determining ratings; protects the 

users of credit ratings; promotes accuracy in credit ratings issued by NRSROs; and ensures that such 

ratings are not unduly influenced by conflicts of interest.

Office of Municipal Securities: Administers the rules of the Commission with respect to the practices 

of municipal securities brokers and dealers, municipal advisors, and investors in, and issuers of, 

municipal securities. The office also coordinates with the Municipal Securities Rulemaking Board 

(MSRB) on rulemaking and enforcement actions. 
59 

Office of Chief Accountant

Executive Summary

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Headquarters 50 47 50

FY 2013 FTE by SEC Strategic Goal

Goal 1 Goal 2 Goal 3 Goal 4

Foster and Enforce Establish an 

Compliance Effective Facilitate Access Align and 

with Federal Regulatory To Information Manage 

Securities Laws Environment Investors Need Resources

11 21 16 2

The Office of the Chief Accountant (OCA) is responsible for establishing and interpreting accounting 

policy to enhance the transparency and relevancy of financial reporting for investors. OCA works to 

improve the professional performance of public company auditors to ensure that financial statements 

used for investment decisions are presented fairly and have credibility. OCA leads the SEC’s efforts 

to oversee accounting standard-setting by the Financial Accounting Standards Board (FASB), and 

auditor oversight and standard-setting by the Public Company Accounting Oversight Board (PCAOB).

The FY 2013 budget request would provide OCA with additional resources to foster progress towards 

development of a single set of high-quality, globally accepted accounting standards, and to oversee the 

FASB and PCAOB. The Office is requesting 4 additional positions (1 FTE) in FY 2013.
60 

Office of Investor Education and Advocacy

Executive Summary

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Headquarters 45 44 47

 

FY 2013 FTE by SEC Strategic Goal

Goal 1 Goal 2 Goal 3 Goal 4

Foster and Enforce Establish an

Compliance Effective Facilitate Access Align and 

with Federal Regulatory To Information Manage 

Securities Laws Environment Investors Need Resources

2 6 36 3

Understanding the needs and concerns of investors is critical to carrying out the SEC’s investor 

protection mission. The Office of Investor Education and Advocacy (OIEA) advances this mission

by communicating daily with investors, responding to their complaints and inquiries, and providing 

educational programs and materials.

In FY 2013, OIEA plans to initiate investor education campaigns on key strategies for making 

informed investment decisions, including publicizing Investor.gov. OIEA also plans to continue its 

research on various categories of investors and investment decision-making behavior, which will help 

inform OIEA’s investor education programs and the Commission’s rulemaking agenda. Additionally, 

OIEA plans to shorten response times for investor contacts and improve quality assurance. Due to 

increased awareness of OIEA’s investor assistance function from its investor education campaigns, the 

office estimates it will receive and close approximately 5,000 more investor assistance matters 

compared to FY 2012. To implement new initiatives and address increasing workloads, OIEA 

requests 5 additional positions (associated with 2 FTE) in FY 2013.
61 

Office of International Affairs

Executive Summary

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Headquarters 37 37 44

 

FY 2013 FTE by SEC Strategic Goal

Goal 1 Goal 2 Goal 3 Goal 4

Foster and Enforce Establish an

Compliance Effective Facilitate Access Align and 

with Federal Regulatory To Information Manage 

Securities Laws Environment Investors Need Resources

24 15 4 1

The Office of International Affairs (OIA) assists the Commission in meeting its mandate by advancing 

cross-border supervisory and enforcement cooperation, advising the agency on developing and 

modernizing regulatory policy responses to reflect the global nature of securities activity, and 

providing technical assistance to emerging markets.

One of OIA’s core functions is to assist the Enforcement program on cross-border investigations and 

to foster investor protection in a global environment. In FY 2011, over 30 percent of all SEC 

enforcement investigations had a cross-border component, and OIA staff will continue to utilize its 

foreign law expertise to obtain foreign information for the Enforcement program. In FY 2013, 

Enforcement cases are projected to continue to have international elements and become more complex 

as fraudsters employ new methods to secrete ill-gotten gains. To foster ongoing partnerships with 

foreign authorities from whom the SEC may seek enforcement assistance, OIA will also continue to 

use dedicated staff to compel information located in the U.S. on their behalf.

In FY 2013, it will also be increasingly important to enhance supervisory cooperation, evaluate 

implementation of comparable foreign regulatory reforms and identify potential ramifications of new 

regulatory regimes on U.S. market participants that operate internationally. OIA will continue its 

efforts to develop bilateral supervisory cooperation memoranda of understanding (MOUs) and other 

arrangements with foreign regulatory authorities to facilitate cooperation in the oversight of entities 

regulated on a cross-border basis. OIA also will work cooperatively within the International 

Organization of Securities Commissions (IOSCO) and the Financial Stability Board (FSB) to enhance 

cross-border supervisory cooperation, as well as address systemic risk issues.

OIA requests 4 additional positions (associated with 1 FTE) in FY 2013.
62

Office of the Administrative Law Judges

Executive Summary

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Headquarters 9 11 12

FY 2013 FTE by SEC Strategic Goal

Goal 1 Goal 2 Goal 3 Goal 4

Foster and Enforce Establish an

Compliance Effective Facilitate Access Align and 

with Federal Regulatory To Information Manage 

Securities Laws Environment Investors Need Resources

12

Pursuant to the Administrative Procedure Act and federal securities laws, administrative law judges 

preside at evidentiary hearings where the Commission has determined that public hearings are 

appropriate, in the public interest, and for protection of investors. The hearings are conducted in a 

manner similar to non-jury trials in federal court.

In FY 2013, the Office of the Administrative Law Judges (OALJ) plans to dispose of roughly 

160 proceedings. For these proceedings, the OALJ expects to issue approximately 25 initial decisions. 
63 

Office of the Investor Advocate

Executive Summary

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Headquarters 0 3 6

FY 2013 FTE by SEC Strategic Goal

Goal 1 Goal 2 Goal 3 Goal 4

Foster and Enforce Establish an 

Compliance Effective Facilitate Access Align and 

with Federal Regulatory To Information Manage 

Securities Laws Environment Investors Need Resources

4 2

The Office of the Investor Advocate is required by Sec. 915 of the Dodd-Frank Wall Street Reform 

and Consumer Protection Act (Dodd-Frank Act). The Office will be responsible for providing 

assistance to investors in resolving significant problems they may have with the SEC or with selfregulatory organizations (SROs), and identifying areas in which investors would benefit from changes 

to federal laws or to SEC regulations or SRO rules.

In FY 2012, the Office will be established with 6 positions (3 FTE), comprised of the Investor 

Advocate and Ombudsman, three staff members transferred from the Office of Investor Education and 

Advocacy, and one additional position. The SEC is not requesting additional positions for the office 

in FY 2013.
64 

Office of Credit Ratings

Executive Summary

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Headquarters 0 17 30

FY 2013 FTE by SEC Strategic Goal

Goal 1 Goal 2 Goal 3 Goal 4

Foster and Enforce Establish an 

Compliance Effective Facilitate Access Align and 

with Federal Regulatory To Information Manage 

Securities Laws Environment Investors Need Resources

24 4 2

The Office of Credit Ratings (OCR) will be established by the SEC in FY 2012, as required by 

Sec. 932 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). 

OCR will be responsible for administering the rules of the Commission with respect to the practices of 

nationally recognized statistical rating organizations (NRSROs) in determining ratings, for protecting 

the users of credit ratings and in the public interest; promoting accuracy in credit ratings issued by 

NRSROs; and ensuring that such ratings are not unduly influenced by conflicts of interest. 

Additionally, OCR will be responsible for conducting examinations of each NRSRO at least annually, 

and for issuing an annual public report that summarizes the essential findings resulting from these 

examinations. Until establishment of OCR, examinations of the NRSROs will be conducted by the 

Office of Compliance Inspections and Examinations (OCIE) and NRSRO monitoring and rule writing 

will be undertaken by the Division of Trading and Markets.

In FY 2012, OCR will be established with 29 positions (17 FTE), comprised of the Director,

24 staff members from OCIE, three staff members from the Division of Trading and Markets, and one 

additional staff member. For FY 2013, the SEC requests six additional positions for OCR, for a total 

of 35 positions, in order to permit it to satisfy the significant new requirements contained in the

Dodd-Frank Act. These additional staff positions will be filled by individuals with knowledge of and 

expertise in corporate, municipal, and structured debt finance. 
65 

Office of Municipal Securities

Executive Summary

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Headquarters 0 3 5

FY 2013 FTE by SEC Strategic Goal

Goal 1 Goal 2 Goal 3 Goal 4

Foster and Enforce Establish an 

Compliance Effective Facilitate Access Align and 

with Federal Regulatory To Information Manage 

Securities Laws Environment Investors Need Resources

3 1 1

The Office of Municipal Securities (OMS), currently part of the Division of Trading and Markets 

(TM), is being elevated to an independent office that reports directly to the SEC Chairman, as required 

by Sec. 979 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). 

OMS is responsible for administering the rules of the Commission with respect to the practices of 

municipal securities brokers and dealers, municipal advisors, and investors in municipal securities. 

OMS also coordinates with the Municipal Securities Rulemaking Board (MSRB) on rulemaking and 

enforcement actions. 

In FY 2012, OMS will be established with 5 positions, comprised of the director, 1 new position in

FY 2012, and 3 staff members transferred from TM. These positions will permit OMS, with the 

assistance from other divisions and offices, to perform the responsibilities identified in the DoddFrank Act. The SEC is not requesting additional positions for OMS in FY 2013.
66 

Agency Direction and Administrative Support

 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Headquarters

 Agency Direction

 Office of Executive Staff 39 42 42

 Office of Public Affairs 6 9 10

 Office of the Secretary 29 31 32

 Subtotal 74 82 84

 Administrative Support

 Office of the Chief Operating Officer 7 10 18

 Office of Financial Management 69 72 86

 Office of Information Technology 117 128 169

 Office of Human Resources 77 85 109

 Office of Administrative Services 105 92 94

 Office of FOIA/Records Management 48 49 62

 Office of the Ethics Counsel 0 13 15

 Office of Minority and Women Inclusion 1 3 11

 Office of Equal Emp. Opportunity 5 8 10

 Subtotal 429 460 574

 Total 503 542 658

Cost: Salaries and Benefits ($000) $84,609 $98,067 $123,195 

 Non-Personnel Expenses ($000) 91,273 118,926 134,083 

Total Costs ($000) $175,882 $216,993 $257,278 

This section of the FY 2013 request details the SEC’s agency-wide executive activities, operations, 

and administrative functions and covers the following areas:

Agency Direction: Includes the Chairman’s and Commissioners’ offices, Office of Legislative and 

Intergovernmental Affairs (OLIA), Office of Public Affairs (OPA), and Office of the Secretary

Office of the Chief Operating Officer: Provides executive leadership in directing the management and 

coordination of the SEC’s core mission support activities

Office of the Ethics Counsel: Administers the Commission’s Ethics Program and interprets the SEC’s 

Supplemental Ethics Rules as well as Federal Government-wide ethics laws, rules and regulations 

Office of Minority and Women Inclusion: Develops standards for all agency matters relating to 

diversity in management, employment, and business activities

Office of Equal Employment Opportunity: Ensures that employees and applicants for employment 

have equal opportunity in employment.
67 

Agency Direction

Executive Summary

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Headquarters

 Office of Executive Staff 39 42 42

 Office of Public Affairs 6 9 10

 Office of the Secretary 29 31 32

 Total 74 82 84

FY 2013 FTE by SEC Strategic Goal

Goal 1 Goal 2 Goal 3 Goal 4

Foster and Enforce Establish an

Compliance Effective Facilitate Access Align and 

with Federal Regulatory To Information Manage 

Securities Laws Environment Investors Need Resources

8 13 52 11

Agency Direction is comprised of the Commissioners and their staff, as well as the Office of the 

Secretary (OS), the Office of Legislative and Intergovernmental Affairs (OLIA), and the Office of 

Public Affairs (OPA). The Chairman’s Office oversees all aspects of agency operations, as well as the 

review and approval of enforcement cases and formal orders of investigation and the development, 

consideration, and execution of the agency’s substantive policy and rulemaking agenda. Matters such 

as the proposal or adoption of new rules and the consideration of enforcement cases are also done by 

the agency’s four other Commissioners and their staffs. 

OLIA works with Members of Congress and their staff on issues that affect the SEC and its mission, 

including the consideration of the agency’s funding and legislation that might affect the securities laws 

or other aspects of agency operations. OLIA also coordinates testimony of SEC officials and oversees 

correspondence sent between the Chairman and Members of Congress. OPA coordinates the SEC’s 

communications with the media, the general public, and foreign visitors. OS reviews all documents 

issued by the Commission, schedules Commission meetings, prepares and maintains records of 

Commission actions, advises the Commission and staff about practice and procedure, and maintains 

the library and related databases and content.

In FY 2012 and FY 2013, the Commission will work to protect investors, strengthen the

administration of the federal securities laws, and implement the rules being finalized with respect to 

derivatives, clearing agencies, private funds and credit rating agencies. OS plans to enhance 

management of administrative proceedings by implementing a new electronic filing system in 

FY 2012. Together, OPA and OS also intend to redesign the SEC’s external website to improve 

accessibility of information for investors, market participants, and SEC staff. In addition, OS plans to 

investigate the feasibility of replacing the outdated content management system used to manage the 

agency intranet, The Insider, with Sharepoint 2010 or another system. A new system will provide 

better functionality to meet the needs of the Commission and will accommodate an anticipated

redesign for better access and usability. In total, these offices are requesting 2 new positions

(less than 1 FTE) in FY 2013.
68 

Office of the Chief Operating Officer

Executive Summary

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Headquarters

 Office of the Chief Operating Officer 7 10 18

 Office of Financial Management 69 72 86

 Office of Information Technology 117 128 169

 Office of Human Resources 77 85 109

 Office of Administrative Services 105 92 94

 Office of FOIA/Records Management 48 49 62

 Total 423 436 538

FY 2013 FTE by SEC Strategic Goal

Goal 1 Goal 2 Goal 3 Goal 4

Foster and Enforce Establish an

Compliance Effective Facilitate Access Align and 

with Federal Regulatory To Information Manage 

Securities Laws Environment Investors Need Resources

1 9 59 469 

The Office of the Chief Operating Officer (OCOO) was established in FY 2010. Led by the Chief 

Operating Officer (COO), the Office provides executive leadership in directing the management and 

coordination of the SEC’s core mission support activities. The OCOO oversees the following five 

functions: the Office of Administrative Services; the Office of Financial Management; the Office of 

FOIA, Records Management, and Security; the Office of Human Resources; and the Office of 

Information Technology. In addition, the COO serves as the Commission’s principal executive 

responsible for the implementation oversight of organizational, management, and infrastructure 

reforms outlined in the March 2011 Boston Consulting Group (BCG) report and is also responsible for 

implementing many of the recommendations articulated by the SEC’s Inspector General. 

In FY 2013, the OCOO request reflects the next phase in growth of the organization as it expands its 

capacity to support the SEC’s mission. If the FY 2013 request is enacted, the OCOO will be better 

positioned to coordinate and provide the organizational and infrastructure improvements necessary to 

advance and support the Commission’s mission and goals. Altogether, the support offices are 

requesting 68 additional positions (associated with 19 FTE) in FY 2013.
69 

Office of the Ethics Counsel

Executive Summary

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Headquarters 0 13 15

FY 2013 FTE by SEC Strategic Goal

Goal 1 Goal 2 Goal 3 Goal 4

Foster and Enforce Establish an 

Compliance Effective Facilitate Access Align and 

with Federal Regulatory To Information Manage 

Securities Laws Environment Investors Need Resources

15

The Ethics Counsel is responsible for administering the Commission’s Ethics Program and for 

interpreting the SEC’s Supplemental Ethics Rules as well as Federal Government-wide ethics laws, 

rules and regulations. The Ethics Counsel provides independent legal analysis and advice to the 

Chairman, Commissioners, and divisions and offices on ethics issues. The Ethics Counsel is also the 

SEC’s liaison with the United States Office of Government Ethics.

In FY 2012, the SEC established the Office of the Ethics Counsel as an independent office reporting 

directly to the Chairman. Prior to FY 2012, the Ethics Counsel function was part of the Office of the 

General Counsel.

Ethics counseling matters are expected to rise in FY 2012 and FY 2013, in large part due to the

overall increase in SEC staff as well as the elimination of the Ethics Liaison positions in the SEC’s 

divisions and offices. The Office of the Ethics Counsel has responsibility for all agency financial 

disclosure requirements, including review of the staff’s securities transactions. This workload is 

expected to rise in FY 2013, commensurate with the increase in SEC staff. Additionally, the Office is 

implementing a new electronic ethics and compliance system in early FY 2013. The Ethics Office 

requests 3 additional positions (associated with 1 FTE) for FY 2013 to address the increased workload.
70 

Office of Minority and Women Inclusion

Executive Summary

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Headquarters 1 3 11

FY 2013 FTE by SEC Strategic Goal

Goal 1 Goal 2 Goal 3 Goal 4

Foster and Enforce Establish an 

Compliance Effective Facilitate Access Align and 

with Federal Regulatory To Information Manage 

Securities Laws Environment Investors Need Resources

11

The Office of Minority and Women Inclusion (OMWI) was newly established by the SEC in

FY 2011, as required by Section 342 of the Dodd-Frank Act. OMWI is responsible for all matters of 

the agency relating to diversity in management, employment, and business activities. Additionally, 

the Director of this office advises the Chairman on the impact of the policies and regulations of the 

SEC on minority-owned and women-owned businesses. The SEC requests 5 new positions 

(associated with 1 FTE) in FY 2013 in order to permit it to perform the basic responsibilities identified 

in the Dodd-Frank Act.
71 

Office of Equal Employment Opportunity

Executive Summary

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Headquarters 5 8 10

FY 2013 FTE by SEC Strategic Goal

Goal 1 Goal 2 Goal 3 Goal 4

Foster and Enforce Establish an 

Compliance Effective Facilitate Access Align and 

with Federal Regulatory To Information Manage 

Securities Laws Environment Investors Need Resources

10

The Office of Equal Employment Opportunity (OEEO) oversees and promotes equal employment 

opportunity at the SEC. Federal EEO laws prohibit employment discrimination based on age, color, 

disability status, gender, national origin, race, religion, protected genetic information, and sexual 

orientation; and also prohibits retaliation against individuals for participating in the EEO process or 

opposing employment discrimination. These laws protect SEC employees and applicants for 

employment. Also, OEEO develops and delivers programs and training to foster an inclusive work 

environment for all employees.

In FY 2013, in connection with the agency’s requested expansion of its staff, OEEO will assist 

divisions and offices with developing and maintaining diverse applicant pools by leveraging the SEC’s 

eight Employee Resource Groups. OEEO will provide these groups with the necessary resources to 

support its programmatic requirements, such as history month celebrations, meetings, brown bag 

lunches, and special events. OEEO will also provide training and instructional EEO programs to all 

SEC employees.

In addition, OEEO will promote the SEC’s full compliance with EEO law and regulations under the 

jurisdiction of the Equal Employment Opportunity Commission (EEOC). As appropriate, OEEO will 

collaborate with other offices to support the diversity-related components of the Dodd-Frank Act that 

are applicable to employees. Finally, OEEO will implement a number of EEO projects, as required by 

the Diversity Memorandum of Understanding (Diversity MOU) between the SEC and the National 

Treasury Employees Union (NTEU).

OEEO is requesting 2 additional positions (associated with 1 FTE) in FY 2013.
72 

Office of the Inspector General

Executive Summary

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Headquarters 20 22 25

Cost: Salaries and Benefits ($000) $3,983 $4,208 $4,888 

 Non-Personnel Expenses ($000) 2,708 3,138 3,286 

Total Costs ($000) $6,691 $7,346 $8,174 

FY 2013 FTE by SEC Strategic Goal

Goal 1 Goal 2 Goal 3 Goal 4

Foster and Enforce Establish an

Compliance Effective Facilitate Access Align and 

with Federal Regulatory To Information Manage 

Securities Laws Environment Investors Need Resources

25

The Office of the Inspector General (OIG) is an independent office that conducts audits of programs 

and operations of the SEC and investigations into allegations of misconduct by agency staff or 

contractors. The mission of the OIG is to detect fraud, waste, and abuse and to promote integrity, 

economy, efficiency, and effectiveness in the SEC’s programs and operations. The rapid pace of 

significant internal and external changes that affect the work of the SEC drives the work of the OIG.

In FY 2013, the OIG will continue its focus on improving agency operations through audits, 

evaluations, and inspections. It also will enhance staff and agency integrity by investigating 

allegations of employee and contractor misconduct. By conducting audits, evaluations, inspections, 

and investigations, the OIG supports the efforts of Congress and the SEC to fulfill their responsibilities 

and achieve their goals and objectives with respect to oversight of the securities industry and investor 

protection. 

The Dodd-Frank Reform and Consumer Protection Act (Dodd-Frank Act) imposed significant new 

responsibilities on the SEC as a whole, and specifically on the OIG. In particular, Section 966

of the Dodd-Frank Act required the OIG to establish an OIG SEC Employee Suggestion Program

to receive suggestions by Commission employees for improvements in the work efficiency, 

effectiveness, productivity, and use of resources of the Commission, as well as allegations by 

employees of the Commission of waste, abuse, misconduct, or mismanagement within the 

Commission. During FY 2013, the OIG will continue to monitor, track, and analyze information 

received through the OIG SEC Employee Suggestion Program.

The FY 2013 budget request is being submitted in conformance with the requirements of the

Inspector General Reform Act of 2008 (P.L. 110-409). The aggregate amount of funds requested for 

the direct costs of operating the OIG in FY 2013 is $5,830,588. The estimated training costs for the 

OIG for FY 2013 are $22,000, and the OIG’s estimated contribution to the Council of the Inspectors 

General on Integrity and Efficiency (CIGIE) is $13,960. The OIG is requesting 1 additional position 

(associated with 1 FTE) in FY 2013.
73

Appendix A - Acronyms

ABS Asset-Backed Securities

ARP Automation Review Program

BCG Boston Consulting Group

BD Broker-Dealer

BMO Business Management Office

CCP Central Counterparty

CEO Chief Executive Officer

CF Division of Corporation Finance

CFO Chief Financial Officer

CFTC Commodity Futures Trading Commission

CIGIE Council of the Inspectors General on Integrity and Efficiency

COO Chief Operating Officer

COOP Continuity of Operations

COTS Commercial-Off-The-Shelf

CPSS-IOSCO

Committee on Payment and Settlement Systems and the Technical Committee of the 

International Organization of Securities Commissions

D&I Diversity & Inclusion

EBP Evidence-Based Performance

ECM Enterprise Content Management

ECN Electronic Communication Network

EDGAR Electronic Data Gathering Analysis and Retrieval

EEO Equal Employment Opportunity

ESC Employees' Securities Companies

ETFs Exchange Traded Funds

FASB Financial Accounting Standards Board

FDIC Federal Deposit Insurance Corporation

FINRA Financial Industry Regulatory Authority

FOIA Freedom of Information Act

FSB Financial Stability Board

FSOC Financial Stability Oversight Council

FSSP Federal Shared Service Provider

FTE Full-Time Equivalent

FY Fiscal Year

G-20 Group of 20 

GAAP Generally Accepted Accounting Principles

GAO Government Accountability Office

HSPD-12 Homeland Security Presidential Directive-12

IA Investment Advisers

IASB International Accounting Standards Board

IFRS International Financial Reporting Standards

IFRSF International Financial Reporting Standards Foundation
74

IG Inspector General

IM Division of Investment Management

IMF International Monetary Fund

IOSCO International Organization of Securities Commissions

IRS Internal Revenue Service

IT Information Technology

ITIL Information Technology Infrastructure Library

MAP Mission Advancement Program

MMOU Multilateral Memorandum of Understanding

MOU Memorandum of Understanding

MSRB Municipal Securities Rulemaking Board

MUI Matters under Inquiry

NRSRO Nationally Recognized Statistical Rating Organizations

NTEU National Treasury Employees Union

O&M Operations & Maintenance

OALJ Office of the Administrative Law Judges

OAS Office of Administrative Services

OCA Office of Chief Accountant

OCIE Office of Compliance Inspections and Examinations

OCOO Office of the Chief Operating Officer

OCR Office of Credit Ratings

OEEO Office of Equal Employment Opportunity

OFM Office of Financial Management

OFRMS Office of FOIA, Records Management and Security Services

OFS Office of FOIA Services

OGC Office of the General Counsel

OHR Office of Human Resources

OIA Office of International Affairs

OIEA Office of Investor Education and Advocacy

OIG Office of the Inspector General

OIT Office of Information Technology

OLIA Office of Legislative and Intergovernmental Affairs

OME Office of Managing Executive

OMI Office of Market Intelligence

OMS Office of Municipal Securities

OMWI Office of Minority and Women Inclusion

OPA Office of Public Affairs

OPM Office of Personnel Management

ORM Operational Risk Management

OS Office of the Secretary

OSHA Occupational Safety & Health Administration

OSS Office of Security Services

OTC Over-the-Counter

PCAOB Public Company Accounting Oversight Board
75

PWG President's Working Group 

RMS Office of Records Management Services

RSFI Division of Risk, Strategy and Financial Innovation

SDR Swap Data Repositories

SECU Securities and Exchange Commission University

SEF Swap Execution Facility

SIPC Securities Investor Protection Corporation

SMO Service Management Office

SRO Self-Regulatory Organization

TCR Tips, Complaints and Referrals

TM Division of Trading and Markets

VaR Value-at-Risk