U.S.Securities and

ExchangeCommission

In Brief

FY 2009 Congressional Justification

February 2008
U.S. Securities and Exchange Commission 

FY 2009 Congressional Justification in Brief 

TABLE OF CONTENTS 

Subject Page 

Tables 

FTE and Positions by Program ..................................................... 1 

Obligations by Object Class ...................................................... 2 

Average Salary and Grade........................................................... 2 

FY 2009 Request by Strategic Goal and Program ................................ 3 

Summary of Changes ................................................................. 4 

Fee Collections and Spending Authority .......................................... 5 

Appropriations Language ......................................................... 6 

Request by Strategic Goal 

FY 2009 Request by Strategic Goal ................................................ 7 

Goal 1: Enforce Compliance with Federal Securities Laws ........... 9 

Goal 2: Promote Healthy Capital Markets ................................ 16 

Goal 3: Foster Informed Investment Decision Making ................. 23 

Goal 4: Maximize the Use of SEC Resources ........................... 30 

Request by Program 

Division of Enforcement ............................................................. 35 

Office of Compliance Inspections and Examinations ........................... 36 

Division of Corporation Finance ................................................... 37 

Division of Trading and Markets ................................................... 38 

Division of Investment Management ............................................... 39 

Office of the General Counsel ...................................................... 40 

Other Program Offices ............................................................... 41 

Office of Chief Accountant ................................................. 42 

Office of Investor Education and Advocacy .............................. 43 

Office of International Affairs ............................................... 44 

Office of Economic Analysis ............................................... 45 

Office of Risk Assessment .................................................. 46 

Office of the Administrative Law Judges ................................. 47 

Agency Direction and Administrative Support ................................... 48 

 Agency Direction ............................................................. 49 

Office of the Executive Director ............................................ 50 

Office of Information Technology ....................................... 51 

Office of Equal Employment Opportunity .............................. 52 

Office of the Inspector General .......................................... 53 

-i-
FTE and Positions by Program 

FY 2007 

Actual 

FY 2008 

Enacted 

FY 2009 

Request 

FTE Positions FTE Positions FTE Positions 

Enforcement

 Headquarters 

Regions 

Total 

412 442 

699 750 

1,111 1,192 

421 462 

703 747

1,124 1,209 

408 448

 685 729

1,093 1,177 

Compliance Inspections and Examinations 

 IC/IA Program

 Headquarters 

Regions 

 Subtotal 

BD/SRO Program

 Headquarters 

Regions 

 Subtotal 

Total 

34 38 

391 417 

425 455 

102 112 

290 309 

392 421 

817 876 

35 39 

394 418

429 457 

102 114 

293 311

395 425

824 882 

50 56

 380 404

430 460

82 91

 284 302

 366 393 

796 853 

Corporation Finance 430 486 448 487 439 477 

Trading and Markets 157 176 176 199 174 197 

Investment Management 145 162 150 163 145 158 

General Counsel 

Headquarters 

Regions 

Total 

116 132 

10 11 

126 143 

123 132 

10 11

133 143 

121 130

 10 11

131 141 

Other Program Offices 

Chief Accountant 

 Investor Education and Advocacy 

 International Affairs 

 Economic Analysis 

 Risk Assessment 

 Administrative Law Judges 

Total 

53 54 

65 66 

28 30 

24 35 

2 9 

10 12 

182 206 

58 62 

71 76 

28 31 

29 35 

4 9 

11 12

201 225 

56 60

69 74

27 30

29 35

4 9

 11 12

196 220 

Agency Direction and Administrative 

Support 

 Executive Staff 

Public Affairs 

Secretary 

 Executive Director 

 Financial Management 

 Human Resources 

 Administrative Services 

 Information Technology 

 Equal Employment Opportunity 

Inspector General 

Total 

38 39 

7 9 

42 45 

6 11 

55 61 

61 68 

85 94 

123 138 

9 10 

9 10 

435 485 

36 39 

8 9 

42 45 

7 11 

57 61 

63 68 

87 94 

129 139 

9 10 

9 10

447 486 

34 37

8 9

42 45

7 11

56 60

60 65

86 93

124 134

9 10

 9 10

435 474 

Total FTE and Positions 

Headquarters Total Permanent 

 Regional Office Total Permanent 

 Temporary 

3,465 3,798 

2,013 2,239 

1,390 1,487 

62 72 

3,567 3,868

2,103 2,307 

1,400 1,487 

64 74 

 3,473 3,771

2,050 2,251

1,359 1,446

64 74 

-1-
Obligations by Object Class 

($ in thousands) 

FY 2007 

Actual 

FY 2008 

Enacted 

FY 2009 

Request 

Personnel Compensation & Benefits

 Total Personnel Compensation (11.0)

 Full-time Permanent (11.9) 

 Other than Full-time Permanent (11.3) 

 Other Personnel Compensation (11.5) 

 Special Personnel Services (11.8) 

 Civilian Personnel Benefits (12.1) 

 $447,200.3 

433,974.3 

2,498.9 

9,034.2 

1,692.9 

122,651.9 

$477,760.0

467,552.2 

2,496.3 

6,866.5 

845.0 

130,356.7 

 $487,294.0

476,899.3

2,616.6

6,907.1

871.0

132,931.3 

Sub-total Cost of Salaries $569,852.2 $608,116.7 $620,225.3 

Other Expenses 

 Benefits for Former Personnel (13.0) 

 Travel and Transportation of Persons (21.0) 

 Transportation of Things (22.0) 

 Rent, Communications & Utilities (23.0)

 Rental Payments to Others (23.2) 

 Comm.,Utilities, and Misc. Charges (23.3) 

 Printing and Reproduction (24.0) 

 Other Contractual Services (25.0)

 Advisory and Assistance Services (25.1) 

Other Services (25.2) 

 Purchase of Goods & Services from

 Government Accounts(25.3) 

 Operation & Maintenance of Facilities (25.4) 

 Operation & Maintenance of Equipment (25.7) 

 Supplies and Materials (26.0) 

 Equipment (31.0) 

 Building Alterations (32.0) 

 Claims and Indemnities (42.0) 

175.0 

9,811.3 

162.3 

 112,016.2 

98,309.0 

13,707.2 

11,830.4 

 132,130.1 

25,067.6 

21,484.8 

3,778.5 

7,141.2 

74,658.0 

3,197.3 

32,748.1 

3,170.0 

363.5 

80.0 

10,662.4 

200.7 

106,630.1

94,165.6 

12,464.5 

8,963.0 

136,623.7

28,887.2 

27,652.5 

2,492.7 

10,109.5 

67,481.8 

3,594.6 

28,698.8 

2,430.0 

0.0 

80.0

10,213.0

175.7

 105,594.0

93,741.5

11,852.5

8,863.0

 133,708.1

28,263.7

27,030.7

2,438.9

9,891.3

66,083.5

3,512.1

28,198.8

2,430.0

0.0 

Sub-total Cost of Other Expenses $305,604.2 $297,883.3 $292,774.7 

Spending Authority $875,456.4 $906,000.0 $913,000.0 

Average Salary and Grade 1/ 

FY 2007 FY 2008 FY 2009 

Actual Enacted Request 

Average SO Salary $199,783 $203,895 $209,808 

Average SK Salary $127,707 $131,679 $137,530 

Average SK Grade 13 13 13 

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

-2-
FY 2009 Request by Strategic Goal and Program 

($ in thousands) 

FY 2009 Request 

Goal 1 Goal 2 Goal 3 Goal 4 

SEC Program 

FY 2007 

Actual 

FY 2008 

Enacted 

Enforce 

Securities 

Laws 

Healthy 

Capital 

Markets 

Informed 

Decision 

Making 

Maximize 

Use of FY 2009 

Resources Request 

FY 2007 Actual $587,550.2 $74,889.3 $129,228.1 $83,788.8 FY 2008 Enacted $615,801.9 $81,977.4 $123,416.0 $84,804.7 Enforcement

Headquarters Regions 

Compliance Inspections and Examinations

IC/IA Programs

Headquarters 

Regions 

BD/SRO Program

Headquarters Regions 

Corporation Finance Trading and Markets Investment Management General Counsel

Headquarters Regions 

Other Program Offices Agency Direction and  Administrative Support 

 $298,027.4 

130,494.4 

167,533.0 

 200,505.2 

 102,393.9 

9,225.4 

93,168.5 

 98,111.3 

28,006.9 

70,104.4 

106,552.9 

38,299.2 

45,620.7 

 33,050.6 

28,852.0 

4,198.6 

54,982.0 

98,418.4 

$314,950.7 

142,060.7 

172,890.0 

204,804.0 104,398.6 

9,342.9 

95,055.7 

100,405.4 

27,514.8 

72,890.6 

111,686.9 

43,110.4 

45,748.1 

34,860.0 

30,619.7 

4,240.3 

52,970.6 

97,869.3 

$317,777.2

142,176.8 

175,600.4 

205,744.5109,130.3

13,075.0 

96,055.3 

96,614.2

23,122.1 

73,492.1 

28,388.9 

4,859.4 

13,106.8 

20,750.1

18,179.6 

2,570.5 

14,156.7 

15,567.4 

$0.0

0.0 

0.0 

0.0 0.0

0.0 

0.0 

0.0

0.0 

0.0 

10,220.0 

30,039.9 

15,366.6 

6,797.5

5,955.4 

842.1 

18,493.7 

1,751.9 

$0.0

0.0 

0.0 

0.0 0.0

0.0 

0.0 

0.0

0.0 

0.0 

74,946.7 

9,277.1 

16,722.4 

1,788.8

1,567.2 

221.6 

19,231.9 

2,481.9 

$0.0

 $317,777.2 

0.0 142,176.8 

0.0 175,600.4 

0.0

 205,744.5 

0.0

 109,130.3 

0.0 13,075.0 

0.0 96,055.3 

0.0

 96,614.2 

0.0 23,122.1 

0.0 73,492.1 

0.0 113,555.6 

0.0 44,176.4 

0.0 45,195.8 

6,439.7

 35,776.1 

5,642.0 31,344.2 

797.7 4,431.9 

0.0 51,882.3 

79,090.9 98,892.1 

Total SEC Funding $875,456.4 $906,000.0 $620,351.0 $82,669.6 $124,448.8 $85,530.6 $913,000.0 Percent Increase over Prior Year 1% 1% 1% 1% 
Summary of Changes 

($ in thousands) 

FY 2008 FY 2009 Net 

Enacted Request Change 

Spending Authority..................... $906,000.0 $913,000.0 +$7,000.0 

Full-time Equivalents.................. 3,567 3,473 -94 

Positions................................. 3,868 3,771 -97 

Explanation of Changes: Positions FTE Amount 

FY 2009 Base Changes 

Annualization of FY 2008 3.5% pay - - - - - - +5,708.0 

raise 

FY 2009 pay raise, 3.0% effective first 

full pay period in January 2009 - - - - - - +13,026.7 

Merit pay increases for eligible staff - - - - - - +10,642.4 

Staffing adjustments necessary to absorb 

manadatory increases in FY 2009 -97 -94 -22,377.1 

Total Change........................... -97 -94 +$7,000.0 

-4-
Fee Collections and Spending Authority 

Actual/Target Fee Collections under P.L. 107-123 

$0 

$500 

$1,000 

$1,500 

$2,000 

2002 

Actual 

2003 

Actual 

2004 

Actual 

2005 

Actual 

2006 

Actual 

2007 

Actual 

2008 

Target 

2009 

Target 

2010 

Target 

2011 

Target 

Fiscal Year 

$ in millions

Sections 13(e) & 14(g)* 

Section 31 

Section 6(b) 

* Fees collected under Sections 13(e) and 14(g) do not have collection targets specified in statute. Rather, the rate 

for these fees must equal the fee rate assessed under Section 6(b). 

FY 2007 FY 2008 FY 2009 

Actual Estimate Estimate 

Source of Fees ($ in thousands) 

Registration of securities: Securities Act of 1933 

(Section 6(b)) $213,627 $234,000 $284,000 

Securities transactions under the Securities Exchange 

Act of 1934 (Section 31) 1,280,013 892,000 1,023,000 

Merger and Tender Fees under the Securities 

Exchange Act of 1934 (Sections 13(e) and 14(g)) 44,741 21,000 25,000 

Collections Amounts $1,538,381 $1,147,000 $1,332,000 

FY 2007 FY 2008 FY 2009 

Actual Enacted Request 

Spending Authority ($ in thousands) 

Current Year Appropriated Offsetting Collections $861,456 $842,738 $871,000 

Available Balances from Prior Years 14,000 63,262 42,000

 Total Authority $875,456 $906,000 $913,000 

-5-
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, $913,000,000, to remain available until expended; of which not 

to exceed $20,000 may be used toward funding 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, appropriate representatives and staff to exchange views concerning 

developments relating to securities matters, development and implementation of 

cooperation agreements concerning securities matters and provision of technical 

assistance for the development of foreign securities markets, such expenses to include 

necessary logistic and administrative expenses and the expenses of Commission staff and 

foreign invitees in attendance at such consultations and meetings including: (1) such 

incidental expenses as meals taken in the course of such attendance; (2) any travel and 

transportation to or from such meetings; and (3) any other related lodging or subsistence: 

Provided, That fees and charges authorized by sections 6(b) of the Securities Act of 1933 

(15 U.S.C. 77f(b)), and 13(e), 14(g) and 31 of the Securities Exchange Act of 1934 (15 

U.S.C. 78m(e), 78n(g), and 78ee), shall be credited to this account as offsetting 

collections: Provided further, That not to exceed $871,000,000 of such offsetting 

collections shall be available until expended for necessary expenses of this account: 

Provided further, That $42,000,000 shall be derived from prior year unobligated balances 

from funds previously appropriated to the Securities and Exchange Commission: 

Provided further, That the total amount appropriated under this heading from the general 

fund for fiscal year 2009 shall be reduced as such offsetting fees are received so as to 

result in a final total fiscal year 2009 appropriation from the general fund estimated at not 

more than $0. 

-6-
FY 2009 Request by Strategic Goal 

The mission of the Securities and Exchange Commission is to protect investors; maintain 

fair, orderly, and efficient markets; and facilitate capital formation. The SEC is 

responsible for overseeing more than 12,000 publicly traded companies, over 10,000 

investment advisers that manage more than $38 trillion in assets, nearly 1,000 fund 

complexes, 6,000 broker-dealers with 172,000 branches, and the close to $44 trillion 

worth of trading conducted each year on America’s stock and option exchanges. The 

SEC’s oversight responsibilities directly impact the financial well-being of a majority of 

Americans, as more than 50 percent of U.S. households own stocks either directly or 

through mutual funds. 

The SEC’s FY 2009 budget is focused on achieving the goals and outcomes identified in 

the agency’s strategic plan (see Chart 1). The SEC’s budget for FY 2009 totals $913 

million, a $7 million (0.8 percent) increase over the agency’s FY 2008 enacted level of 

$906 million. The FY 2009 budget funds 3,409 permanent FTE, a reduction of 94 FTE 

(-2.7 percent) from the SEC’s FY 2008 level. The agency intends to maintain its 

operating levels while absorbing mandatory increases for both personnel and non-salary 

costs in FY 2009. 

Chart 1 

FY 2009 Request by Strategic Goal 

($ in thousands) 

Goal 1 

Enforce Compliance with Federal Securities Laws 

$620,351.0 (68%) 

Goal 4 

Maximize the use of SEC Resources 

$85,530.6 (9%) 

Goal 2 

 Promote Healthy Capital Markets 

$82,669.6 (9%) 

Goal 3 

Foster Informed Investment Decision Making 

$124,448.8 (14%) 

-7-
The agency focuses resources on achieving strategic goals through its programs (see 

Chart 2). Among other things, these programs work to detect and address violations and 

potential problems in the securities markets; craft regulations that strengthen corporate 

and fund governance; provide investors with timely access to accurate, adequate, and 

useful disclosure materials; and ensure that the agency’s human capital strategies, 

information technology initiatives, and resources are appropriately aligned to achieve the 

agency’s mission, goals, and outcomes. 

Chart 2 

FY 2009 Request by SEC Program 

($ in thousands) 

Other Program Offices 

$51,882.3 (6%) Agency Direction & Administrative Support 

$98,892.1 (11%) General Counsel 196 FTE (6%) 

435 FTE (13%) $35,776.1 (4%) 

131 FTE (4%) 

Enforcement 

Investment Management $317,777.2 (35%) $45,195.8 (5%) 1,093 FTE (32%) 

145 FTE (4%) 

Trading and Markets

$44,176.4 (5%)

174 FTE (5%) Corporation Finance Compliance Inspections & Examinations 

$113,555.6 (12%) $205,744.5 (22%) 

439 FTE (13%) 796 FTE (23%) 

The following chapters contain the agency’s performance budget and present how 

resources are allocated among the major SEC programs to achieve its goals. The FY 

2009 performance budget also presents new and revised performance measures and 

indicators the agency uses to determine its success in achieving planned outcomes. These 

measures reflect the agency’s ongoing strategic planning activities and results from 

program evaluations conducted by the Office of Management and Budget and its Program 

Assessment and Rating Tool (PART). 

Following the performance budget, the agency presents its FY 2009 budget by office and 

division with detailed information on program priorities, initiatives, and workload figures. 

-8-
Goal 1: Enforce Compliance with Federal Securities Laws 

The Commission seeks to detect problems in the securities markets, prevent and deter 

violations of federal securities laws, and alert investors to possible wrongdoing. When 

violations occur, the SEC aims to take prompt action to halt the misconduct, sanction 

wrongdoers effectively, and return funds to harmed investors. In FY 2009, the agency 

will continue to develop innovative approaches to enforcing compliance with the federal 

securities laws through the use of new technologies and enhanced emphasis on those 

entities and activities that pose the greatest threat to investors. The agency plans to 

devote approximately $620 million and 2,249 permanent FTE to achieving this goal. 

Chart 3 

FY 2009 Request (Permanent FTE) FY 2009 Request ($ in thousands) 

2,249 Total FTE $620,351.0 Total Cost 

Compliance Inspections & Examinations (35%) Compliance Inspections & Examinations (33%) 

C Corporation Finance (5%) orporation Finance (5%) Trading and Markets (1%) Trading and Markets (1%) Investment Management Investment Management (2%) General Counsel (3%)

Enforcement (49%) 

General Counsel (3%) 

Other Program Offices (2%) 

Agency Direction & 

Enforcement (51%) 

Other Program Offices (2%) 

Agency Direction & 

Administrative Support (3%) Administrative Support 

(3%) 

Outcome 1.1: Potential problems or issues in the securities markets are detected 

early and violations of federal securities laws are prevented. 

Examination Program: The Office of Compliance Inspections and Examinations (OCIE) 

will continue to conduct routine, cause, and special examinations that target firms and 

practices with the greatest potential for harming investors. Exams that result in 

“significant” findings (Indicator 1) include violations that are the same as those found in a 

previous exam; lead to a referral to a self-regulatory organization (SRO) or the Division 

of Enforcement for investigation; or result in significant corrective action by the firm, 

such as funds being reimbursed to affected investors. As demonstrated by Measure 1, 

OCIE expects about 95 percent of the registrants examined to address and correct all 

compliance deficiencies on issues identified by examinations. Examination results also 

will be used to identify trends and issues that may need to be addressed through 

enforcement actions, Commission guidance or rulemaking, investor alerts, or other 

actions. 

OCIE expects to conduct examinations of higher-risk advisers at least once every three 

years (Measure 2). In addition, OCIE will select a statistically random sample of advisers 

-9-
with lower-risk profiles and conduct inspections of these firms and affiliated fund groups 

as resources allow. These inspections evaluate a firm’s compliance program, apply 

forensic tests designed to uncover schemes to defraud investors, and assign the firm a risk 

rating. OCIE also examines broker-dealers, transfer agents, clearing agencies, and SROs 

and continually attempts to concentrate resources on issues and entities that pose the 

greatest risks to investors and market integrity. 

As shown in Measure 3, the percentages of all registered investment advisers and 

investment companies examined in FY 2009 are expected to be lower than in FY 2006 

and FY 2007. The reason for the decline is primarily due to the increasing registrant 

population, as well as an increase in both registrant operational complexity and the time 

needed to evaluate the effectiveness of fund and adviser compliance programs. The 

percentage of broker-dealers examined in FY 2009 is expected to be somewhat higher 

than in FY 2006 and FY 2007 due to a small decrease in the number of registrants. OCIE 

expects to continue completing 80 percent of non-sweep exams within four months so 

that firms may make corrections as quickly as possible (Measure 4). 

OCIE will continue proactive efforts to assist registered firms with compliance through 

its CCOutreach program. Measure 5 was developed to capture information regarding the 

number of chief compliance officers (CCO) participating in the program and to gauge its 

effectiveness in helping registered firms with their compliance efforts, thus reducing the 

likelihood of investor harm. During FY 2009, the staff expects to continue devoting a 

significant amount of time to this program in order to make it as relevant and beneficial 

as possible for registered entities. 

Goal 1: Measure 1 (new) 

Percentage of firms receiving deficiency letters that stated they took or would 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 ensure that they do not recur. 

FY 

2004 

FY 

2005 

FY 

 2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

N/A N/A 95% 95% 94% 95% 95% 

-10-
Goal 1: Measure 2 (new) 

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. 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. 

FY 

2004 

FY 

2005 

FY 

 2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

N/A N/A 33% 33% 33% 33% 33% 

Goal 1: Measure 3 (new) 

Percentage of registrant population 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: routine 

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

emerging risk areas, and oversight examinations of broker-dealers to test compliance and the quality of the 

SROs’ inspections. 

FY 

2004 

FY 

2005 

FY 

2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

Investment advisers N/A N/A 14% 10% 13% 10% 9% 

Investment companies N/A N/A 27% 15% 20% 15% 15% 

Broker-Dealers (exams 

by SEC and SROs) N/A N/A 49% 49% 54% 55% 55% 

Goal 1: Measure 4 (new) 

Percentage of (non-sweep) exams that are concluded within 120 days 

Description: The staff conducts thousands of 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. 

FY 

2004 

FY 

2005 

FY 

 2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

N/A N/A 83% 80% 79% 80% 80% 

Goal 1: Measure 5 (new) 

Percentage of attendees at CCOutreach that rated the program as “Useful” or “Extremely Useful” in 

their compliance efforts 

Description: The CCOutreach program consists of several components that are designed to educate, inform, 

and alert CCOs 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 CCOutreach events in 

which CCOs participate, CCOs are given the opportunity to rate the usefulness of the information provided in 

assisting them in their compliance efforts. 

FY 

2004 

FY 

2005 

FY 

 2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

N/A N/A 95% 80% 97% 85% 90% 

-11-
Goal 1: Indicator 1 

Percentage of exams with “significant” findings 

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

more technical in nature, such as failing to include all information that is required to be in a record. 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 indicator was 

implemented in FY 2005 and the staff expects to continue to refine the factors that are used to measure the 

significance of examination findings. This indicator is useful for understanding the SEC’s activities, but should 

not be considered a performance measure and does not include a target that the agency will strive to reach in 

future years. 

FY 2005 FY 2006 FY 2007 

Fund/Adviser Exams 37% 39% 35% 

Broker/Dealer Exams 48% 40% 37% 

Outcome 1.2: Violations of federal securities laws are investigated and 

appropriately sanctioned. 

Enforcement Program: In FY 2009, the Division of Enforcement expects to receive and 

handle a combined total of 1.6 million investor complaints, tips, and forwarded e-mail 

spams and to open approximately 1,035 matters under inquiry. The staff expects to open 

about 785 investigations to determine if there is sufficient evidence of a securities law 

violation. 

During its investigations, the Division of Enforcement aims to gather all available 

evidence, but also moves to close an investigation quickly upon determining that no 

violations occurred. The staff continually strives to balance the need for complete, 

effective, and fair investigations with the need for timely filing of enforcement actions 

against individuals and companies who violate securities laws. 

In FY 2009, the agency anticipates that the percentage of first enforcement cases filed 

within two years will remain at 60 percent, the same as in FY 2008 (Measure 6). This 

percentage is dependent on the types of cases brought, as well as the time needed for 

other priorities such as litigating actions already filed. Issuer reporting and disclosure 

cases, historically the most complex cases, were a larger percentage of cases brought in 

FY 2007 than in prior years, and the agency anticipates this trend will continue into FY 

2009. As demonstrated in Measure 7, the agency intends to continue maintaining an 

effective distribution of cases across core enforcement areas—a key element of a 

successful enforcement program. 

Indicator 2 provides detail on the number of investigations opened and closed and cases 

filed during the fiscal year. Although it is useful for understanding the staff’s activities, it 

should not be considered a measure with annual targets. The Division of Enforcement 

evaluates the evidence as presented in each instance, rather than aiming to achieve 

predetermined numerical targets. However, the staff strives to resolve successfully as 

-12-
many cases as possible, while also pursuing those that are large, difficult, or precedentsetting. In FY 2009, the Division of Enforcement aims to resolve 90 percent of its cases 

successfully (Measure 8). A continued high success ratio depends on numerous factors, 

including the complexity of cases, the extent to which parties contest actions, and the 

availability of litigation and investigation resources. 

The agency works to secure the payment of any penalties or disgorgements ordered in its 

cases. Under the Sarbanes-Oxley Act, the SEC can use Fair Funds to redirect penalties 

collected from securities law violators to the victims of their wrongdoing. Measures 9 

and 10 demonstrate the SEC’s commitment to distribute penalties and disgorgement 

monies effectively and efficiently to injured investors. The agency’s new financial 

tracking system, Phoenix, will provide for improved management of these funds. 

The Office of International Affairs (OIA) will continue its efforts to freeze and repatriate 

assets obtained in violation of securities laws and transferred abroad. Although future 

estimates for the amount of frozen assets cannot be projected, OIA’s efforts in this area 

will likely increase as international cooperation on enforcement matters continues to 

develop (Indicator 3). 

OIA also facilitates and uses arrangements with the SEC’s foreign counterparts to 

increase international enforcement cooperation. The staff is working with the 

International Organization of Securities Commissions (IOSCO) to achieve the goal of 

having all IOSCO jurisdictions be accepted as signatories to IOSCO’s Multilateral 

Memorandum of Understanding (MMOU), or express a commitment to seek legal 

authority to become signatories. Approximately seven countries signed the MMOU in 

FY 2007, for a total of 41 signatories since FY 2005. The agency will continue to 

encourage foreign jurisdictions to sign the agreement, with the goal of 74 MMOU 

signatories by the end of FY 2010. 

Goal 1: Measure 6 

Percentage of first enforcement cases filed within two years 

Description: This measure identifies the percentage of first enforcement actions filed within two years of 

opening an investigation or inquiry. In conducting investigations, the Division of Enforcement 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. 

FY 

2004 

FY 

2005 

FY 

 2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

69% 65% 64% 66% 54% 60% 60% 

-13-
Goal 1: Measure 7 

Maintaining an effective distribution of cases across core enforcement areas 

Description: Effective deterrence of securities fraud requires that the cases filed by the SEC have adequate 

reach across all core enforcement program areas. The mix and types of cases vary from year to year based 

upon the conditions of the markets and changes in financial instruments being used. The SEC’s enforcement 

program seeks to maintain a presence and depth so that no single area dominates its case mix, nor is 

underrepresented. 

Percentage of Cases 

FY 

2004 

FY 

2005 FY 2006 

FY 

2007 

Plan 

FY 

2007 

Actual 

FY 

2008 

FY 

2009 

Core Enforcement Program Areas 

Financial Disclosure 28% 29% 24% <40% 33% <40% <40% 

Investment Advisers and 

Investment Companies 14% 16% 16% <40% 12% <40% <40% 

Broker-Dealers 22% 15% 13% <40% 14% <40% <40% 

Securities Offerings 15% 9% 11% <40% 10% <40% <40% 

Insider Trading 7% 8% 8% <40% 7% <40% <40% 

Market Manipulation 6% 7% 5% <40% 5% <40% <40% 

Delinquent Filings -- -- 16% <40% 8% <40% <40% 

Other 8% 16% 7% <40% 11% <40% <40% 

Total 100% 100% 100% 100% 100% 100% 100% 

Goal 1: Measure 8 

Percentage of enforcement cases successfully resolved 

Description: A case is considered “successfully resolved” if it results in a favorable outcome for the SEC, 

including through litigation, a settlement, or the issuance of a default judgment. In general, the SEC strives to 

successfully resolve as many cases as possible but, at the same time, aims to file large, difficult, or precedentsetting cases when appropriate, even if success is not assured. This measure does not include any cases in 

which the SEC awaits a final outcome. The measure is calculated on a per-defendant basis. Large cases may 

involve several defendants. (Percentages for FY 2004-FY 2006 have been recalculated to reflect a change in 

categorization; consequently, these numbers are slightly lower than those reported previously.) 

FY 

2004 

FY 

2005 

FY 

2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

90% 91% 94% 85% 92% 85% 90% 

Goal 1: Measure 9 (new) 

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

within six months 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, payment must be made by a certain date. This measure identifies the 

percentage of debtors who have made payments or for which the SEC has initiated a collection activity within 

six months 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. 

FY 

2004 

FY 

2005 

FY 

 2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

N/A N/A N/A N/A N/A 70% 70% 

-14-
Goal 1: Measure 10 (new) 

Percentage of Fair Funds and disgorgement dollars designated for distribution that are distributed to 

investors within 12 months 

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 use amounts paid as 

penalties to reduce losses to injured parties. The Commission seeks to return money to wronged investors as 

quickly as possible. Funds not returned to investors are sent to the U.S. Treasury; neither disgorgement nor 

penalties go to the SEC. 

FY 

2004 

FY 

2005 

FY 

 2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

N/A N/A N/A N/A N/A 55% 60% 

Goal 1: Indicator 2 (new) 

Volume of enforcement activity: investigations opened, cases filed, and investigations closed 

Description: The volume of enforcement activity depends on a variety of factors, including the incidence of 

wrongdoing in a given fiscal year, the amount of staff resources available, and the timeframes imposed in court 

proceedings. This indicator captures the number of investigations and cases opened in a given fiscal year, as 

well as the number of investigations closed. An investigation may be closed without an enforcement action, 

because of a number of factors including insufficient evidence. An investigation also may be closed when all 

related cases have been adjudicated and all related penalties and disgorgements have been collected and 

dispersed, including to injured investors. This indicator is useful for understanding the SEC’s activities, but 

should not be considered a performance measure and does not include a target that the agency will strive to 

reach in future years. 

Activity FY 2005 FY 2006 FY 2007 

Investigations pending as of 

beginning of fiscal year* 3,770 4,097 4,146 

Investigations opened 947 914 776 

Cases filed 630 574 656 

Investigations closed 625 868 374 

*The number of investigations pending at the beginning of the fiscal year may change from previously reported 

numbers due to investigations being reopened. 

Goal 1: Indicator 3 

Assets frozen abroad in SEC cases through coordination with foreign regulators 

Description: In order to effectively enforce compliance with federal securities laws and in support of 

enforcement cases filed domestically, the SEC works closely with foreign regulators, law enforcement 

agencies, and courts on SEC cases to locate ill-gotten proceeds that have been transferred overseas and freeze 

the accounts in which they are located. The SEC works to freeze such assets so that violators cannot benefit 

from their wrongdoing. This indicator is useful for understanding the SEC’s activities, but should not be 

considered a performance measure and does not include a target that the agency will strive to reach in future 

years. 

FY 2005 FY 2006 FY 2007 

Assets Frozen Abroad 

(in millions) $15.3 $20.7 $11.0 

-15-
Goal 2: Promote Healthy Capital Markets 

The investments of every American are dependent upon the maintenance of healthy 

capital markets. The Commission seeks to sustain an effective and flexible regulatory 

environment that will facilitate innovation, competition, and capital formation to ensure 

that our economy can continue to grow and to create jobs for our nation’s future. 

Enhancing the productivity of America is a key goal that the agency works to achieve by 

increasing investor confidence in the capital markets. The agency will continue to 

consider regulatory proposals that yield significant benefits for the securities markets, in 

areas such as investment management regulation, securities firm supervision, disclosure, 

and accounting policy. The agency plans to devote approximately $83 million and 300 

permanent FTE to achieve this goal. 

Chart 4 

FY 2009 Request (Permanent FTE) FY 2009 Request ($ in thousands) 

300 Total FTE $82,669.6 Total Cost 

Agency Direction & Administrative Support 

(2%) Corporation Finance 

Agency Direction & 

Administrative Support (2%) Corporation 

Other Program 

Offices (21%) (13%) Other Program Offices (22%) 

General 

Counsel (8%) 

Finance (12%) 

General 

Counsel (8%) 

Investment Management Trading and Markets Investment Trading and 

(16%) (40%) Management (19%) Markets (37%) 

Outcome 2.1: Unnecessary impediments to capital formation are eliminated, and 

industry efforts to provide innovative and competitive products and trading 

platforms are supported. 

Securities Firm and Market Supervision: While the Division of Trading and Markets 

(TM) earned the highest possible rating in the Office of Management and Budget’s 

(OMB) Program Assessment Rating Tool evaluation, TM anticipates significant new 

challenges regarding the regulation and supervision of the major securities markets, 

including analyzing the implications of cross-border unions of U.S. and non-U.S. selfregulatory organizations (SRO). As the agency continues to review SRO rule proposals 

affecting sales practices, the supervision of personnel, and foreign and domestic transfer 

agents, TM plans to respond to 75 percent of SRO rule filings in less than 60 days 

(Measure 1). However, agency success in achieving this goal is somewhat dependent 

upon the complexity of the proposed rule changes submitted in a given year. 

-16-
While not directly responsible for the growth of capital markets, the agency makes every 

effort in its role as their principal regulator to promote investor confidence, fair and 

orderly markets, and efficient capital formation. In FY 2009, TM expects 99 percent of 

transaction dollars to be settled on time (Measure 3), as the increasing volume and value 

of securities transactions makes accurate and timely settlement a necessity. As shown in 

Measure 4, barring the most serious circumstances, the TM expects 96 percent of all 

market outages to be corrected in less than 24 hours. 

In FY 2009, TM will continue rulemaking efforts related to Regulation SHO (short 

selling), Regulation M (anti-manipulation), and Rule 15c2-11 (over-the-counter markets). 

The agency also will continue to implement initiatives to modernize the national market 

system and to address the governance and transparency of SROs and consolidated 

supervised entities. Staff will provide consolidated supervision to at least five 

internationally-active securities firms and plan to review any additional applications for 

such supervision. 

Investment Management Regulation: The top strategic priority for IM will be to 

implement new rules designed to provide mutual fund investors with more reader-friendly 

disclosure. IM also anticipates recommending that the Commission adopt a rule to 

reform or rescind rule 12b-1 under the Investment Company Act, which permits mutual 

funds to use fund assets to pay for the sale of fund shares and other distribution-related 

activities. 

As a measure reflecting effectiveness of investment companies as a vehicle for capital 

formation, the division tracks equity portfolio holdings of investment companies as a 

percentage of total stock market capitalization. In FY 2009, IM anticipates equity 

portfolio holdings for U.S. investment companies will continue to increase, reaching 22.4 

percent of total U.S. stock market capitalization, based on a rolling ten-year average 

(Measure 5). 

Disclosure: Staff of the Division of Corporation Finance (CF) and the Office of Chief 

Accountant (OCA) will continue analyzing how foreign private issuers are applying 

International Financial Reporting Standards (IFRS) as published by the International 

Accounting Standards Board in SEC filings, and evaluate the effectiveness, consistency 

and transparency of the IFRS financial statements. The SEC will work to promote 

convergence between U.S. generally accepted accounting principles and IFRS. 

The SEC also intends to continue promoting the use of interactive data under its 

voluntary filing program for receiving financial data using eXtensible Business Reporting 

Language (XBRL). CF will review the results of the pilot to determine whether further 

rule proposals are appropriate as well as participate in the review of the new taxonomy 

issued by XBRL-US. OCA will support the newly formed Office of Interactive 

Disclosure, which was created in 2007 to lead the agency’s efforts to advance the use of 

-17-
interactive data in public companies’ financial reporting by, among other things, working 

with key public and private sector stakeholders in the U.S. and worldwide. 

Accounting Policy: In FY 2009, OCA will continue to oversee the Financial Accounting 

Standards Board’s (FASB) standard setting activities, including ongoing major projects to 

simplify and codify accounting standards, and establishing a more principles-based 

approach to setting accounting standards. OCA also will develop recommendations to the 

Commission based on the findings of the Advisory Committee on Improvements to 

Financial Reporting. 

Goal 2: Measure 1 

Percentage of SRO rule filings closed in less than 60 days from filing 

Description: The SEC reviews SRO rule proposals for consistency with investor protection and market 

operation and structure rules that govern the operation of registered national securities exchanges, clearing 

agencies, the NASD, and the Municipal Securities Rulemaking Board. This metric gauges the how quickly the 

SEC completes these reviews after each amendment is filed by the SRO. 

FY 

2004 

FY 

2005 

FY 

2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

78% 80% 84% 75% 83% 75% 75% 

Goal 2: Measure 2 (new) 

Increase in the average daily share volume (in billions of shares) on the New York Stock Exchange 

(NYSE) and Nasdaq exchanges 

Description: The average daily share volume (in billions of shares) is indicative of whether the markets have 

sufficient capacity to be able to handle effectively and efficiently the volume of message traffic that is directed 

to those markets. The source for the data is Bloomberg. 

Exchange 

FY 

2004 

FY 

2005 

FY 

 2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

NYSE 1.5 1.6 1.7 1.5 1.6 1.7 1.8 

Nasdaq 2.1 2.0 2.1 2.2 1.7 2.3 2.4 

Goal 2: Measure 3 (new) 

Percentage of transaction dollars settled on time each year 

Description: Efficient and timely settlement of securities transactions is indicative of a fair and orderly 

market. The percentage of dollar value of transactions settled on time indicates that the relative value of 

unsettled transactions is decreasing compared to the increasing value of transactions. The source of the data is 

The Depository Trust & Clearing Corporation’s Annual Reports. 

FY 

2004 

FY 

2005 

FY 

 2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

97% 98% 98% 98% Not Available 98% 99% 

-18-
Goal 2: Measure 4 (new) 

Percentage of market outages at SROs and 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. 

Within 

FY 

2004 

FY 

2005 

FY 

 2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

2 hours N/A N/A N/A 50% 81% 60% 60% 

4 hours N/A N/A N/A 75% 91% 75% 75% 

24 hours N/A N/A N/A 95% 100% 96% 96% 

Goal 2: Measure 5 

Equity portfolio holdings of U.S. investment companies as a percentage of total U.S. stock market 

capitalization 

Description: This measure may reflect, among other things, the effectiveness of investment companies as a 

vehicle for capital formation. Other factors that may influence short and long term changes in this metric 

include bull and bear markets, technological changes, investor perceptions of industry ethical standards, 

investor reaction to industry marketing efforts, and competition from other financial products/services. The 

future-year targets for this measure are calculated based on a rolling ten-year average. 

FY 

2004 

FY 

2005 

FY 

2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

20.8% 23.0% 25.0% 20.3% 26.8% 21.4% 22.4% 

Goal 2: Indicator 1 

Number of new foreign private issuers and dollar amount of registered securities 

Description: The number of foreign companies registering securities in the United States and the amount of 

money they bring to the public markets can be viewed as an indicator of the integrity, liquidity, and fairness of 

the U.S. markets. This indicator is useful for understanding the SEC’s activities, but should not be considered a 

performance measure and does not include a target that the agency will strive to reach in future years. 

FY 

2005 

FY 

2006 

FY 

2007 

Companies 74 60 77 

Dollar Value 

(in billions) $250 $109 $121 

Outcome 2.2: Investors are protected through rules and regulations that promote 

high quality financial reporting standards worldwide, prevent abusive practices in 

the investment management industry, and maintain fair and financially sound 

markets. 

Securities Firm and Market Supervision: The agency plays a key role in protecting the 

stability and ensuring the resilience of the U.S. financial system. TM will continue to 

lead interagency efforts to establish specific policies and procedures for regulated entities 

-19-
to follow in the event of various disaster scenarios, with the expectation that full 

compliance with the requirements will be achieved by FY 2009 (Measure 6). 

TM, IM, and CF devote a large share of their resources responding to no-action letters 

and interpretive and other requests from regulated entities. Although each division has a 

separate processes and benchmarks for their responses (Measure 7), the agency is 

committed to speeding the approval of such requests. 

Monitoring the Investment Management Industry: While other factors contribute to 

investor confidence in the market and the decisions they make, Measures 8, 9, and 10 

gauge the SEC’s efforts in sustaining a regulatory structure that supports investor 

protection, investor confidence, and industry innovation. Targets for these measures are 

derived from averages for a base period. 

International Policy: In order to sustain an effective and flexible regulatory environment 

in the face of increasingly global financial markets, the Office of International Affairs 

(OIA) works with many securities regulators and international organizations to promote 

comprehensive transparency and disclosure, strengthen the supervision of global firms 

and markets, and reinforce high quality regulatory standards. In FY 2009, OIA will 

continue its efforts to maintain and expand information sharing arrangements with foreign 

regulators responsible for oversight of the world’s largest stock markets. OIA also will 

work to promote mutual recognition between nations of their oversight of exchanges, 

broker-dealers, investment advisers, and asset managers. 

Goal 2: Measure 6 (new) 

Percentage of regulated entities representing a single point of failure that meet the continuity of 

operations standards of the White Paper, the Policy Statement, and the Automated Review Program 

Description: In 2003, SEC and several other agencies jointly published the Interagency Paper on Sound 

Practices to Strengthen the Resilience of the U.S. Financial System (White Paper). It identifies sound practices 

to ensure the resilience of the U.S. financial system with a focus on minimizing the immediate system effects of 

a wide-scale disruption on critical financial markets. Subsequent to the release of the White Paper, the agency 

issued a Policy Statement: Business Continuity Planning for Trading Markets, which sets forth the 

Commission’s view that self-regulatory organizations operating trading markets and electronic communications 

networks should apply certain sound practices in their business continuity planning, specifically, that backup 

trading sites require geographic diversity and their operation should not be impaired by a wide-scale 

evacuation. A concern is that the failure of any one entity to adopt the sound practices would represent a single 

point of failure that could prevent trading in its securities in another venue, thus undermining the fairness and 

efficiency of the markets. 

FY 

2004 

FY 

2005 

FY 

 2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

N/A N/A N/A 100% 99.9% 100% 100% 

-20-
Goal 2: Measure 7 (new) 

Timeliness of SEC responses to written no-action letter, exemptive, and 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. 

FY 

2004 

FY 

2005 

FY 

2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

Trading and Markets 

No-action letters, 

exemptive and interpretive 

requests 85% 92% 86% 85% 91% 85% 85% 

Target: Complete 85 percent of all responses within 60 days. 

Investment Management 

No-action letters and 

interpretive requests 71% 78% 76% 75% 91% 75% 75% 

Exemptive applications N/A N/A N/A N/A N/A 80% 80% 

Target: Provide initial comments on at least 75 percent of interpretive and no action requests within three 

weeks of receipt of the letter request, and initial comments on at least 80 percent of exemptive applications 

within 120 days after receipt of an application. Data for this measure will be available during 2008. 

Corporation Finance 

No-action letters and 

interpretive requests 55% 50% 65% 90% 66% 90% 90% 

Shareholder proposals 100% 100% 100% 100% 100% 100% 100% 

Target: Complete 90 percent of initial comments on no-action letters within 30 days and 100 percent of initial 

comments on shareholder proposals by the company’s planned proxy mailing date. 

Goal 2: Measure 8 

Percentage of U.S. households owning mutual fund shares 

Description: The percentage of U.S. households that own mutual fund shares may reflect, among other things, 

the extent to which the regulatory regime allows for industry innovation and fosters investor confidence. Other 

factors that may influence short and long term changes in this metric include bull and bear markets, 

technological changes, investor perceptions of industry ethical standards, investor reaction to industry 

marketing efforts, and competition from other financial products/services. The future year targets for this 

measure are calculated based on a rolling ten-year average. 

FY 

2004 

FY 

2005 

FY 

2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

42.4% 42.7% 43.0% 42.4% 43.6% 43.6% 43.6% 

-21-
Goal 2: Measure 9 (new) 

Percentage of U.S. households investing in the securities market either through direct share ownership or 

ownership of mutual funds 

Description: The percentage and number of households that invest in the securities market reflects, among 

other things, the extent to which the regulatory regime provides a fair, orderly, and efficient market while 

fostering investor protection and confidence in the markets. The source of this data is the Investment Company 

Institute and the Securities Industry and Financial Markets Association’s reports entitled “Equity Ownership in 

America,” which are available once every three years. Targets are updated every three years and use a base 

period of 1983-1995. 

FY 

2004 

FY 

2005 

FY 

 2006 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

N/A 50.3% N/A N/A 50.8% N/A 

Goal 2: Measure 10 

Mutual fund share of total retirement assets 

Description: This measure reflects, among other things, investor confidence in mutual funds and a flexible 

regulatory scheme that allows funds to successfully compete in the market with other financial institutions. 

Other factors that may influence short and long term changes in this metric include bull and bear markets, 

technological changes, investor perceptions of industry ethical standards, investor reaction to industry 

marketing efforts, competition from other financial products and services, changes in tax law, legislation or rule 

changes that affect retirement accounts, and the pending transition of baby boom generation retirement 

investments from the accumulation phase to the distribution phase. The future year targets for this measure are 

calculated based on a rolling ten-year average. 

FY 

2004 

FY 

2005 

FY 

2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

21.3% 22.4% 23.5% 21.1% 24.9% 21.9% 22.5% 

-22-
Goal 3: Foster Informed Investment Decision Making 

An educated investing public ultimately provides the best defense against fraud and 

costly mistakes. The agency works to promote informed investment decisions through 

two main approaches: reviewing disclosures of companies and mutual funds to enhance 

the clarity, completeness, and accuracy of the information that is available to investors; 

and implementing a variety of investor education initiatives. The agency plans to devote 

approximately $124 million and 480 permanent FTE to achieve this goal. 

Chart 5 

FY 2009 Request (Permanent FTE) FY 2009 Request ($ in thousands) 

480 Total FTE $124,448.8 Total Cost 

Agency Direction & Other Program Agency Direction 

Other Program Administrative Support Offices (16%) & Administrative Support

Offices (17%) 

General Counsel (1%) 

(2%) General (2%) 

Counsel (1%) 

Investment

Management (11%) Investment

Trading and Management (13%) 

Markets (8%) Corporation Finance 

Trading and Corporation 

Markets (7%) Finance (61%) (61%) 

Outcome 3.1: Investors have accurate, adequate, and timely public access to 

disclosure materials that are useful, and can be easily understood and analyzed 

across companies, industries, or funds. 

Disclosure: As part of its disclosure program, the agency requires issuers to disclose 

material financial and other information to the public. These disclosures form a common 

pool of knowledge that all investors can use to judge for themselves if a security is a good 

investment. The Divisions of Corporation Finance (CF) and Investment Management 

(IM) will continue to meet the requirements of the Sarbanes-Oxley Act by reviewing the 

disclosures of about 33 percent of all reporting companies and investment company 

portfolios each year (Measure 1). This volume of disclosure reviews is expected to help 

deter fraud in public securities transactions and help ensure that investors receive relevant 

information about emerging and novel issues. CF’s Office of Global Security Risk also 

will continue its review of the disclosures of companies in countries the U.S. Department 

of State has identified as state sponsors of terrorism. 

In addition to reviewing the filings of reporting companies, CF expects to continue to 

issue initial comments on 1933 and 1934 Act registration statements and transactional 

filings within its target goal of 30 days of filing (Measure 2). IM aims to provide 

-23-
comments within timeliness goals for at least 85 percent of initial registration statements, 

90 percent of post-effective amendments, and 99 percent of preliminary proxy statements 

(Measure 3). These targets are consistent with past performance. 

Because it is important for investors to have timely access to material information on 

which to base their investment decisions, the agency requires that almost all disclosure 

documents be filed electronically and makes a majority of those filings immediately 

available to the investing public through the SEC’s website, www.sec.gov. The agency 

will continue to employ a variety of methods to expand the use of interactive data, which 

allows investors, industry analysts, and the agency itself to easily analyze and compare 

financial and other disclosure data from a particular issuer or across an entire industry. 

The agency will work toward substantially increasing the percentage of forms and 

submissions in structured formats, as well as converting 90 percent of all filings and 

submissions into electronic format (Measure 4). 

The agency will continue upgrading the Electronic Data Gathering and Retrieval 

(EDGAR) system to handle filings that contain interactive data, and it will evaluate and 

approve taxonomies that define how financial statements’ data components relate to each 

other. As shown in Measure 5, there were 802 million searches for EDGAR filings in FY 

2007, more than 25 percent higher than previously expected. Approximately 1.069 

billion searches are expected in FY 2009, about 33 percent more than in FY 2007 and 

more than double the number of searches in FY 2006. The agency anticipates the 

dramatic increase in demand as the interactive data and full-text search initiatives 

improve the system, making the information more user-friendly for investors. 

The SEC recently expanded the responsibilities of the Office of Investor Education and 

Advocacy (OIEA) significantly, including forming the Office of Policy to promote a 

policy agenda on behalf of individual investors. A key function of the Office of Policy in 

FY 2009 will be assessing the views and needs of retail investors and ensuring that those 

views inform the Commission’s regulatory policies and disclosure programs. 

-24-
Goal 3: Measure 1 

Percentage of Exchange Act reporting companies reviewed by the SEC 

Description: The Sarbanes-Oxley Act requires that the SEC review the disclosures of all reporting companies 

and investment company portfolios at least once every three years. These reviews help improve the 

information available to investors and may uncover possible violations of the securities laws. 

FY 

2004 

FY 

2005 

FY 

2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

Corporations 22% 50% 33% 33% 36% 33% 33% 

Investment Company 

Portfolios 54% 37% 36% 33% 38% 33% 33% 

Goal 3: Measure 2 

Average 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 SEC comments. Companies often build this timeframe into their plans. The 30-day timeframe is 

considered aggressive given the other mandatory reviews the agency conducts and the fluctuation in filing 

volume that impacts workload plans. 

FY 

2004 

FY 

2005 

FY 

2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

27.8 days 26.1 days 26.2 days <30 days 25.5 days <30 days <30 days 

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 comment within 30 days after they are 

filed (60 days for registration statements of insurance product separate accounts). The SEC also aims to 

comment on post-effective amendments within 45 days and preliminary proxy statements within 10 days after 

they are filed. 

FY 

2004 

FY 

2005 

FY 

2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

Initial Registration 

Statements 88% 90% 88% 85% 87% 85% 85% 

Post-Effective 

Amendments 98% 97% 96% 90% 95% 90% 90% 

Preliminary Proxy 

Statements 100% 100% 99% 99% 99% 99% 99% 

-25-
Goal 3: Measure 4 

Percentage of forms and submissions filed electronically and in a structured format 

Description: The SEC continues to emphasize electronic filing to make information available to the public in 

a format that can be easily obtained and analyzed. The SEC currently has over 100 forms that must be filed 

with the agency, which annually generate hundreds of thousands of filings with the agency. This measure 

identifies the percentage of forms that are in electronic format and the percentage of resulting filings that are 

received electronically by the SEC. In addition, the agency is redesigning its systems to allow additional forms 

to be filed using structured formats (e.g., information is captured in a comma delimited, XML, XBRL, or other 

format). This measure also gauges the percentage of forms that are available to be filed in a structured format 

and the percentage of resulting filings that are received in the structured format. 

FY 

2004 

FY 

2005 

FY 

2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

Forms

 Structured format 

Another electronic format 

4% 

68% 

5% 

67% 

8% 

62% 

9% 

67% 

8% 

62% 

13% 

67% 

14%

68%

 Total % in electronic format 72% 72% 70% 76% 70% 80% 82% 

Filings Received 

 Structured format 

Another electronic format 

36% 

52% 

35% 

54% 

35% 

55% 

36% 

54% 

35% 

53% 

37% 

53% 

38%

52%

 Total % in electronic format 88% 89% 90% 90% 88% 90% 90% 

Goal 3: Measure 5 

Number of searches for EDGAR filings on www.sec.gov 

Description: Greater availability of market-sensitive information through the SEC’s EDGAR system provides 

investors with the ability to make better-informed investment decisions. This measure gauges the demand for 

EDGAR data through the SEC’s website (in millions). NOTE: The SEC recently revised and refined the 

methodology for calculating prior year data and forecasting out-year estimates for this metric. 

FY 

2004 

FY 

2005 

FY 

2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

284 379 531 637 802 935 1,069 

Outcome 3.2: Investors have a better understanding of the operations of the 

nation’s securities markets. 

Investor Education and Outreach: Investors who have access to information and know 

what questions to ask are more likely to invest wisely. Through its website and other 

outreach opportunities, the agency provides the public with a wide variety of materials to 

help investors understand the basics of investing. 

The agency recently expanded OIEA’s investor education function, formalizing it within 

a new Office of Investor Education and Outreach devoted to improving financial literacy 

and helping investors make informed investment decisions. In FY 2009, OIEA will 

continue to focus on educating retail investors, including senior citizens, about 

investments commonly marketed to them and providing tips to detect and avoid potential 

frauds and scams. 

-26-
In order to expand the reach of its investor education programs, OIEA will focus on cost 

efficient distribution channels. Measure 6 captures the number of investors directly 

reached by the SEC through its various communication channels, which include OIEA 

web pages; printed publications distributed through the General Service Administration’s 

Federal Citizen Information Center; and in-person appearances at investor fairs and other 

events. Measure 6 also shows the cost per thousand investors reached, which the agency 

aims to reduce while maximizing the number of citizens receiving these communications. 

In FY 2009, OIEA plans to reach a total of 17.4 million investors, at a cost of about $19 

per thousand individuals. 

Investor Advocacy: OIEA also serves the tens of thousands of investors who contact the 

agency each year with investment-related complaints and questions. The staff seeks to 

provide timely and accurate responses to the public’s telephone inquiries by maintaining 

service levels that meet or exceed industry standards. The staff also strives to address and 

close complaints and inquiries as quickly as possible, though a substantial portion 

requires responses from the entities involved and take weeks to resolve. In FY 2009, the 

staff plans to close 85 percent of complaints and inquiries within seven days and close 

almost all within 30 days. OIEA will continue to explore ways to provide useful 

responses to investment-related complaints and questions more efficiently in FY 2009, 

and the office plans to improve its systems and business processes to increase efficiency 

and maximize capacity (Measures 7 and 8). 

Freedom of Information Act (FOIA): The agency also responds to requests from 

investors and other individuals and organizations for information under FOIA. The 

agency is making a concerted effort to reduce its response times to such requests. In FY 

2009, OIEA plans to focus resources on reducing the backlog of prior year requests and 

implementing records management strategies that will increase the accessibility of 

information, leading to faster response time for routine FOIA requests received (Measure 

9). 

-27-
Goal 3: Measure 6 (new) 

Demand for investor education information, and average cost per thousand investors reached 

Description: The Office of Investor Education and Advocacy (OIEA) 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 Education web page, a key tool for 

informing and educating the investing public. In addition, OIEA publishes a dozen hard-copy educational 

brochures. The General Services Administration’s Federal Citizen Information Center serves as one of the 

most important distribution channels for the SEC’s most popular English and Spanish publications. OIEA staff 

members also attend investor fairs and participate in other outreach activities, as feasible. In order to help 

educate the largest number of investors, OIEA carefully considers the costs and potential reach of its investor 

education programs. 

FY 2004 FY 2005 FY 2006 

FY 2007 

Plan 

FY 2007 

Actual FY 2008 FY 2009 

Total number of investors 

reached (in millions) 6.7 9.0 15.2 N/A 13.5 15.2 17.4 

Average cost per thousand 

investors reached 

N/A N/A N/A N/A $27 $22 $19 

Goal 3: Measure 7 (new) 

Percentage of investor complaints and inquiries completed within seven and thirty business days 

Description: OIEA serves the tens of thousands of investors who contact the SEC each year with investmentrelated complaints and questions. The staff aims to close out as many new investor assistance matters within 

seven business days. Some complaints require responses from the entities involved, however, and may take 

more than 30 days to resolve. 

FY 2005 FY 2006 

FY 2007 

Plan 

FY 2007 

Actual FY 2008 FY 2009 

Closed 

within 

7 days 

Phone calls 99% 98% N/A 98% 99% 99% 

Other contacts 62% 63% N/A 64% 70% 70% 

Total 81% 81% 82% 82% 85% 85% 

Closed 

within 

30 days

Phone calls 99% 99% N/A 99% 99% 99% 

Other contacts 88% 88% N/A 88% 89% 95% 

Total 94% 94% N/A 94% 95% 97% 

-28-
Goal 3: Measure 8 (new) 

Investor assistance and public information telephone inquiries 

Description: The SEC seeks to provide the investing public with timely and accurate responses to their 

telephone inquiries by maintaining service levels that meet or exceed industry standards. 

FY 

2005 

FY 

2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

Investor Assistance 

Abandoned call rate N/A N/A N/A .93% <1% <1% 

Average call wait time N/A N/A N/A 12 sec. <10 sec. <8 sec. 

Public Information 

Abandoned call rate N/A N/A N/A 5.51% <1% <1% 

Average call wait time N/A N/A N/A 33 sec. <13 sec. <8 sec. 

Goal 3: Measure 9 (new) 

Responses to Freedom of Information Act requests 

Description: The Freedom of Information Act (FOIA) establishes timeframes within which the agency must 

respond to requests for non-public information. The agency is working to improve its FOIA response time and 

reduce its pending workload through efforts such as streamlining its internal processes for handling requests 

and posting correspondence related to its disclosure reviews on the SEC website. 

FY 

2005 

FY 

2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

Pending from prior 

FYs * 8,520 9,915 N/A 10,648 7,080 5,080 

Received during FY 9,084 9,381 N/A 9,213 10,000 10,000 

Processed 

 From current year 

 From prior FYs 

Total 

4,370 

3,319 

7,689 

5,389 

3,259 

8,648 

N/A 5,359 

7,424 

12,783 12,000 12,000 

*The pending requests for this measure reflect initial requests and appeals. The pending requests reported in 

the SEC’s FOIA Annual Report do not include appeals. 

-29-
Goal 4: Maximize the Use of SEC Resources 

The investing public and the securities markets are best served by an efficient, wellmanaged, and proactive SEC. The agency strives to improve its organizational 

effectiveness by making sound investments in human capital and new technologies and 

enhancing internal controls. In FY 2009, the SEC will continue implementing a strategic 

plan to ensure that taxpayer dollars are used to maximum effect to fulfill the agency’s 

mission. The agency plans to devote approximately $86 million and 380 permanent FTE 

to achieve this goal. 

Chart 6 

FY 2009 Request (Permanent FTE) FY 2009 Request ($ in thousands) 

380 Total FTE $85,530.6 Total Cost 

Agency Direction & Administrative Support (94%) Agency Direction & Administrative Support (92%) 

General Counsel (6%) General Counsel (8%) 

Outcome 4.1: Human capital strategies are aligned to achieve mission, goals, and 

outcomes. 

Staff Recruitment, Retention, and Training: The SEC’s employees are its most vital 

strategic resource. For that reason, the agency seeks to maintain its position as one of the 

top places to work in the federal government (Measure 2). Ultimately, the agency will 

achieve this by ensuring its human capital program consistently attracts, develops, 

evaluates, rewards, and retains a high-quality, diverse, and results-oriented workforce. 

The Office of Human Resources (OHR) supports the agency’s efforts through continued 

implementation of a new pay-for-performance system, strong benefits and work/life 

programs, and a new child care center at the SEC’s headquarters. The agency intends to 

keep its turnover rate below 8 percent in FY 2009 (Measure 1). 

OHR will continue to apply the Human Capital Assessment and Accountability 

Framework to its operations. At the same time, OHR will realize efficiencies, primarily 

through the use of automation and through delegating routine personnel actions and 

responsibilities to other agency staff. The steps should enhance the office’s efficiency, as 

gauged in Measure 3. 

-30-
Goal 4: Measure 1 

Staff turnover rate 

Description: This rate is determined by dividing the number of employees that leave the agency during the 

fiscal year by the total number of permanent and term employees on board at the beginning of the fiscal year. 

NOTE: The increase in the turnover rate in FY 2006 and into FY 2007 is tied to a high number of retirements 

occurring three years after the implementation of the SEC’s pay parity authority. 

FY 

2004 

FY 

2005 

FY 

2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

6.3% 7.5% 9.1% <7% 8.6% <8% <8% 

Goal 4: Measure 2 (new) 

Maintain a top five ranking among the Best Places to Work in Government 

Description: By offering competitive pay-for-performance and benefits systems that rival those offered by the 

private sector, the SEC aims to be an “employer of choice” in the federal government. The SEC aims to 

maintain a high ranking in this bi-annual survey conducted by the Partnership for Public Service and the 

Institute for the Study of Public Policy Implementation at American University. 

FY 

2004 

FY 

2005 

FY 

 2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

N/A 

Ranked 

#5 N/A 

Top five 

ranking 

Ranked 

#3 

Top five 

ranking 

Top five 

ranking 

Goal 4: Measure 3 (new) 

Human resources productivity 

Description: The SEC continually enhances its productivity through improvements in automation and 

streamlined personnel policies and procedures. As new technology and practices are adopted, the ratio of 

human resources staff to the agency total is one way the SEC gauges its improvements in productivity. The 

office is working to reduce the ratio of human resources staff to agency staff by three percent per year. 

FY 

2004 

FY 

2005 

FY 

 2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

N/A 5% 9% N/A 5.8% 5.6% 5.5% 

Outcome 4.2: Business improvements are promoted through the innovative use of 

information technology. 

Information Technology: Information technology (IT) plays a crucial role in the mission 

of the SEC. With the size and complexity of the U.S. securities markets continuing to 

increase and expand at a rapid pace, it is crucial that the agency leverage technology to 

identify and address the most significant threats to investors and continuously improve its 

productivity. 

The agency will continue to ensure that its technical infrastructure has the necessary 

capacity, performance, resiliency, and security required to support the agency’s business 

processes and information stores. The SEC’s public website and the EDGAR system are 

the agency’s two primary tools for disseminating useful information to investors and the 

financial community in a timely and efficient manner. As Measure 4 illustrates, the 

-31-
agency is committed to maintaining the highest levels of uptime and availability for the 

public website and EDGAR, to ensure that the public and financial communities can 

access useful and time-sensitive disclosure information. 

Equally important, the agency will continue to commit significant resources to its capital 

planning and investment control, enterprise architecture, information security 

management, privacy management, and other information technology governance 

processes in support of the Clinger-Cohen Act, OMB guidance, and other sources of best 

practices. Further, the Office of Information Technology (OIT) anticipates that in FY 

2009, all of the agency’s major applications and systems will maintain certification and 

accreditation and will have undergone a privacy impact assessment (Measure 6). 

The SEC will continue to respond to the ever-increasing need for strong protection of 

agency data. The staff will strive to promptly implement all security-related audit 

recommendations to ensure that the agency’s applications, systems, data, and IT 

infrastructure are secure. By FY 2009, OIT anticipates that all security-related 

recommendations will be resolved within the agency’s goal of 18 months (Measure 5). 

Goal 4: Measure 4 (new) 

Percentage of the time that sec.gov and EDGAR are operable 

Description: The SEC is committed to disseminating useful information to investors and the financial 

community in a timely and efficient manner. The agency uses two primary tools for this purpose: its public 

website and the EDGAR system. This measure gauges the percentage of the time that these tools are operable 

and able to provide information to the public and the financial community. 

System 

FY 

2004 

FY 

2005 

FY 

 2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

sec.gov N/A N/A N/A 100% 100% 100% 100% 

EDGAR N/A N/A N/A 99% 99% 99% 99% 

Goal 4: Measure 5 (new) 

Number of Inspector General and Government Accountability Office (GAO) information security 

related recommendations outstanding for more than 18 months 

Description: The SEC is focused on establishing and maintaining sound and effective controls over the 

information systems that support the agency’s business operations. This measure gauges the timeliness of the 

agency’s corrective actions to substantially complete Inspector General and GAO recommendations related to 

information security. 

Audit Organization 

FY 

2004 

FY 

2005 

FY 

 2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

GAO N/A N/A N/A 0 11 2 0 

OIG N/A N/A N/A 0 4 2 0 

-32-
Goal 4: Measure 6 (new) 

Percentage of major systems that have been certified and accredited, and given a privacy impact 

assessment, within required timeframes 

Description: The SEC works to ensure the confidentiality and integrity of the agency’s information and 

systems and to protect the privacy of any personal information contained in those systems. This measure gauges 

the percentage of the agency’s major applications and systems that have been certified and accredited in 

accordance with the security mandates of the Federal Information Security Management Act; OMB Circular A130, “Management of Federal Information Resources”; and National Institute of Standards and Technology 

security guidelines. In addition, this measure gauges the percentage of agency electronic information systems 

and collections that have undergone a privacy assessment to determine personally identifiable information and 

mitigate potential privacy risks, in accordance with the E-Government Act of 2002 and other applicable laws 

and regulations. 

Major Systems 

FY 

2004 

FY 

2005 

FY 

 2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

Certified and Accredited N/A N/A N/A 100% 96% 100% 100% 

Privacy Impact Assessment 

Completed N/A N/A N/A 100% 89% 100% 100% 

Outcome 4.3: Financial management and internal controls are sound. 

Audited Financial Statements and Budget/ Performance Integration: Given the SEC’s 

statutory role, taxpayers and investors alike have every right to expect that the agency 

maintains strong financial management practices and robust internal controls. The 

agency places great emphasis on bolstering its processes and systems in its budgeting, 

accounting, and internal controls functions. As part of this objective, the agency will 

continue to focus on preparing and publishing complete, concise, understandable, and 

meaningful information about the financial and operating performance of the agency. 

The Office of Financial Management (OFM) staff will strive to maintain the highest 

standards of financial reporting, and continue issuing timely financial statements with 

unqualified opinions from the agency’s auditors (Measure 7). Efforts in FY 2009 will 

focus on implementing changes to both financial management system infrastructure and 

processes to ensure compliance with applicable federal accounting standards. OFM also 

will continue to move towards a more integrated budget and performance environment in 

order to strengthen the agency’s justifications in budget formulation and its ability to 

monitor operating costs and find cost efficiencies in budget execution. 

-33-
Goal 4: Measure 7 

Receive unqualified audit opinion on SEC financial statements with no material weaknesses or significant 

deficiencies 

Description: Under the Accountability of Taxpayer Dollars Act of 2002, the agency is required to meet all 

proprietary accounting guidelines for federal agencies and to undergo annual audits. The SEC’s audits are 

conducted by the Government Accountability Office. In 2007, new auditing standards eliminated the term 

reportable condition and introduced new definitions for the terms “significant deficiency” and “material 

weakness.”

 FY 

2004 

FY 

2005 

FY 

2006 

FY 2007 

Plan 

FY 2007 

Actual 

FY 

2008 

FY 

2009 

Unqualified Opinion Yes Yes Yes Yes Yes Yes Yes 

Material Weaknesses 3 3 0 0 1 0 0 

Significant Deficiency 0 0 3 0 3 3 0 

-34-
Division of Enforcement 

Executive Summary 

FY 2007 FY 2008 FY 2009 

Actual Enacted Request 

FTE: Headquarters 412 421 408

 Regions 699 703 685 

Total 1,111 1,124 1,093 

Cost: Salaries and Benefits ($000) $197,763.3 $209,974.0 $213,644.8 

 Non-Personnel Expenses ($000) 100,264.1 104,976.7 104,132.4 

Total Costs ($000) $298,027.4 $314,950.7 $317,777.2 

FY 2009 FTE by SEC Strategic Goal 

Goal 1 Goal 2 Goal 3 Goal 4 

Enforce 

Compliance 

with Federal 

Securities Laws 

Promote Healthy 

Capital Markets 

Foster Informed 

Investment 

Decisionmaking 

Maximize the 

use of SEC 

Resources 

1,093 

The SEC’s Division of Enforcement prosecutes violations of the federal securities laws 

and works closely with the Department of Justice and U.S. Attorneys offices to 

coordinate and assist in criminal prosecutions. 

Intelligence Analysis: The staff expects to handle 1.6 million investor complaints, tips, 

and forwarded e-mail spam and to open about 1,035 matters under inquiry (MUIs). 

Investigations: The division will continue to maintain a presence in all core areas of 

securities law enforcement. Serious accounting frauds and cases involving conflicts of 

interest in the financial services sector likely will remain the most important program 

areas, but the division also will continue to focus on promoting transparent financial 

statements, protecting seniors from investment scams, uncovering wrongdoing in the 

municipal securities market, and other important areas. The division plans to fully 

implement a new enforcement case management system and open 785 investigations. 

Proceedings: The division will continue to commit resources to protracted litigation and 

seek emergency relief to freeze assets, halt market manipulations, and alert investors to 

false or misleading disclosures. The division will continue its emphasis on prompt 

distribution of Fair Fund monies to injured investors. 

-35-
Office of Compliance Inspections and Examinations 

Executive Summary 

FY 2007 FY 2008 FY 2009 

Actual Enacted Request 

FTE: IC/IA Program

 Headquarters 34 35 50

 Regions 391 394 380

 Subtotal 425 429 430

 BD/SRO Program 

Headquarters 102 102 82

 Regions 290 293 284

 Subtotal 392 395 366 

Total 817 824 796 

Cost: Salaries and Benefits ($000) $132,457.1 $139,746.7 $141,848.4 

 Non-Personnel Expenses ($000) 68,048.1 65,057.3 63,896.1 

Total Costs ($000) $200,505.2 $204,804.0 $205,744.5 

FY 2009 FTE by SEC Strategic Goal 

Goal 1 Goal 2 Goal 3 Goal 4 

Enforce 

Compliance 

with Federal 

Securities Laws 

Promote Healthy 

Capital Markets 

Foster Informed 

Investment 

Decisionmaking 

Maximize the 

use of SEC 

Resources 

796 

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

examination program to detect violations of federal securities laws and evaluate internal 

compliance controls at securities firms registered with the SEC. OCIE uses risk-based 

methodologies to focus resources on those activities that could pose the greatest risk to 

investors and the integrity of the markets. 

In FY 2009, the staff expects to continue examining higher-risk investment advisory firms 

once every three years and lower-risk firms through random sampling. OCIE also 

anticipates deploying additional monitoring teams to a small number of very large advisory 

groups. The risk monitoring and assessment activities of the adviser/fund Surveillance 

Branch will be enhanced. Broker-dealer exams will focus on compliance and risk 

management of select large and complex brokerage firms, and OCIE will continue to 

oversee self-regulatory organizations’ regulation of trading and member firm activity. Staff 

will continue proactive efforts to assist registered firms with improved compliance practices 

through the Chief Compliance Officer Outreach (CCOutreach) program and publishing 

“ComplianceAlerts.” 

-36-
Division of Corporation Finance 

Executive Summary 

FY 2007 

Actual

FY 2008 

Enacted

FY 2009 

Request 

FTE: Headquarters 430 448 439 

Cost: Salaries and Benefits ($000) 

 Non-Personnel Expenses ($000) 

Total Costs ($000) 

$71,460.1 

35,092.8 

$106,552.9

$77,153.4 

34,533.5 

$111,686.9 

$79,216.0 

 34,339.6 

$113,555.6 

FY 2009 FTE by SEC Strategic Goal 

Goal 1 Goal 2 Goal 3 Goal 4 

Enforce 

Compliance 

with Federal 

Securities Laws 

Promote Healthy 

Capital Markets 

Foster Informed 

Investment 

Decisionmaking 

Maximize the 

use of SEC 

Resources 

110 39 290 

The Division of Corporation Finance establishes disclosure requirements and monitors 

disclosure to provide investors with information necessary to make investment decisions 

and to help prevent fraud and misrepresentation in securities transactions. Continuing 

investor interest regarding the quality of financial reporting and corporate governance and 

significant changes in disclosure and other requirements applicable to reporting 

companies have contributed to a changing regulatory environment affecting the securities 

markets. 

Review of Filings: In FY 2009, the division expects to complete about 4,250 reviews of 

reporting companies. This 33 percent review level is expected to help ensure that 

investors receive material information about emerging and novel issues, help deter fraud 

in public securities transactions, and satisfy the requirements of the Sarbanes-Oxley Act 

of 2002. 

Rulemaking and Interpretive Advice: The division will review the implementation of the 

rules requiring filers to make their proxy materials available on the Internet. The division 

will consider recommending that the Commission propose or adopt additional rules 

relating to International Financial Reporting Standards as issued by the International 

Accounting Standards Board (IFRS). The division also will evaluate the 

recommendations of the Advisory Committee on Improvements to Financial Reporting 

that was created to examine the U.S. financial reporting system, with a view to providing 

specific recommendations as to how unnecessary complexity in that system could be 

reduced and how that system could be made more useful to investors. 

-37-
Division of Trading and Markets 

Executive Summary 

FY 2007 

Actual

FY 2008 

Enacted

FY 2009 

Request 

FTE: Headquarters 157 176 174 

Cost: Salaries and Benefits ($000) 

 Non-Personnel Expenses ($000) 

Total Costs ($000) 

$26,977.6 

11,321.6 

$38,299.2 

$30,816.7 

12,293.7 

$43,110.4 

$31,910.8 

 12,265.6 

 $44,176.4 

FY 2009 FTE by SEC Strategic Goal 

Goal 1 Goal 2 Goal 3 Goal 4 

Enforce 

Compliance 

with Federal 

Securities Laws 

Promote Healthy 

Capital Markets 

Foster Informed 

Investment 

Decisionmaking 

Maximize the 

use of SEC 

Resources 

19 118 37 

The Division of Trading and Markets’ mission is to maintain fair, honest, and efficient 

securities markets. As envisioned by the Securities Exchange Act of 1934, the 

Commission directly regulates market participants where Commission rulemaking is the 

most effective approach, and relies on the self-regulation of the securities industry in 

other instances to ensure fair dealing and investor protection. 

Securities Firm Supervision: The division will work with the Financial Industry 

Regulatory Authority to consolidate and revise self-regulatory organization (SRO) rules 

governing securities firms. The staff also will examine potential exemptions for foreign 

broker-dealers based on mutual recognition of regulatory systems. The division will 

engage in consolidated supervision of internationally active securities firms and review 

additional applications for such supervision. Rulemaking efforts related to short sales of 

securities, manipulation, privacy, and financial responsibility will continue, and staff will 

address issues relating to foreign and domestic transfer agents. 

Market Supervision: The division will likely face significant new challenges regarding 

the regulation and supervision of the U.S. securities markets, including analyzing the 

implications of consolidations among U.S. exchanges and other markets, as well as 

affiliations or other alliances between U.S. and non-U.S. markets. The staff also will 

examine appropriate ways to facilitate the globalization of the securities markets and to 

streamline the SEC rule filing process for U.S. exchanges and other SROs. The division 

will carry out initiatives to modernize the national market system and to respond to 

ongoing changes in the options markets, including a new options exchange and growing 

automation. 

-38-
Division of Investment Management 

Executive Summary 

FY 2007 

Actual

FY 2008 

Enacted

FY 2009 

Request 

FTE: Headquarters 145 150 145 

Cost: Salaries and Benefits ($000) 

 Non-Personnel Expenses ($000) 

Total Costs ($000) 

$26,241.4 

19,379.3 

$45,620.7 

$27,999.3 

17,748.8 

$45,748.1 

$28,372.9 

 16,822.9 

 $45,195.8 

FY 2009 FTE by SEC Strategic Goal 

Goal 1 Goal 2 Goal 3 Goal 4 

Enforce 

Compliance 

with Federal 

Securities Laws 

Promote Healthy 

Capital Markets 

Foster Informed 

Investment 

Decisionmaking 

Maximize the 

use of SEC 

Resources 

42 49 54 

The Division of Investment Management regulates investment companies and investment 

advisers under two companion statutes, the Investment Company Act of 1940 and the 

Investment Advisers Act of 1940. The division seeks to protect investors from fraud, 

mismanagement, self-dealing, and inadequate disclosures by investment companies and 

investment advisers, without imposing unnecessary burdens on regulated entities. 

The division’s top strategic priority for FY 2008 and FY 2009 will be recommending that 

the Commission adopt and implement new rules designed to provide mutual fund 

investors with more reader-friendly disclosure and to improve the delivery of mutual fund 

information through increased use of electronic means of delivery, including the Internet. 

The staff also will continue to pursue initiatives to promote the use of interactive data, 

enabling investors to search, analyze, and compare the information in fund disclosure 

documents or financial reports. The division also anticipates recommending that the 

Commission propose in FY 2008 and adopt in FY 2009 a rule that would reform or 

rescind rule 12b-1, which permits mutual funds to use fund assets to pay for the sale of 

fund shares and other distribution-related activities. 

The division will review the disclosures, including financial statements, of one-third of 

investment company portfolios as required by the Sarbanes-Oxley Act of 2002. The staff 

also will review most new portfolios of open-end and closed-end funds, all new insurance 

contracts, most portfolios of new unit investment trusts, and almost all proxy statements 

and post-effective amendments that reflect material changes in disclosure or fund 

operations. 

-39-
Office of the General Counsel 

Executive Summary 

FY 2007 FY 2008 FY 2009 

Actual Enacted Request 

FTE: Headquarters 116 123 121

 Regions 10 10 10 

Total 126 133 131 

Cost: Salaries and Benefits ($000) $24,141.6 $26,163.5 $27,030.0 

 Non-Personnel Expenses ($000) 8,909.0 8,696.5 8,746.1 

Total Costs ($000) $33,050.6 $34,860.0 $35,776.1 

FY 2009 FTE by SEC Strategic Goal 

Goal 1 Goal 2 Goal 3 Goal 4 

Enforce 

Compliance 

with Federal 

Securities Laws 

Promote Healthy 

Capital Markets 

Foster Informed 

Investment 

Decisionmaking 

Maximize the 

use of SEC 

Resources 

76 25 6 24 

As the chief legal officer of the Commission, the Office of the General Counsel (OGC) 

• serves as counsel to the Commission on all initiatives by the Chairman and agency 

divisions and offices; 

• defends the Commission in federal district courts; 

• represents the Commission in all appellate matters and amicus curiae filings; 

• advises the Commission and prepares opinions on adjudications; 

• counsels the Commission and its staff on ethics matters; 

• represents the Commission in administrative, real estate, labor law, and similar legal 

matters; 

• oversees the Commission’s Bankruptcy Program. 

In FY 2009, OGC will continue managing the agency’s appellate litigation, including 

appeals related to complex enforcement and other legal matters. OGC expects to review 

appeals to the Commission from registered accounting firms as a result of Public 

Company Accounting Oversight Board actions and to help prosecute violations of 

attorney ethics rules under the Sarbanes-Oxley Act. About 60 adjudicatory matters will 

be completed, many of which will resolve novel legal questions under the federal 

securities laws. 

-40-
Other Program Offices 

FY 2007 FY 2008 FY 2009 

Actual Enacted Request 

FTE: Headquarters 

Office of Chief Accountant 53 58 56 

Office of Investor Education and 65 71 69 

Advocacy 

Office of International Affairs 28 28 27 

Office of Economic Analysis 24 29 29 

Office of Risk Assessment 2 4 4 

Office of Administrative Law Judges 10 11 11 

Total 182 201 196 

Cost: Salaries and Benefits ($000) $29,826.0 $33,656.1 $34,408.1 

 Non-Personnel Expenses ($000) 25,156.0 19,314.5 17,474.2 

Total Costs ($000) $54,982.0 $52,970.6 $51,882.3 

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. The SEC has significantly expanded the office’s responsibilities to ensure 

the views of retail investors inform the Commission’s regulatory policies and disclosure 

programs and 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 Economic Analysis: Serves as chief advisor within the SEC on all economic 

issues associated with its regulatory activities. 

Office of Risk Assessment: Helps anticipate, identify, and manage risk. 

Office of Administrative Law Judges: Adjudicates allegations of securities law 

violations. 

-41-
Office of Chief Accountant 

Executive Summary 

FY 2007 

Actual

FY 2008 

Enacted

FY 2009 

Request 

FTE: Headquarters 53 58 56 

FY 2009 FTE by SEC Strategic Goal 

Goal 1 Goal 2 Goal 3 Goal 4 

Enforce 

Compliance 

with Federal 

Securities Laws 

Promote Healthy 

Capital Markets 

Foster Informed 

Investment 

Decisionmaking 

Maximize the 

use of SEC 

Resources 

17 34 5 

The Office of Chief Accountant (OCA) is responsible for establishing, interpreting, and 

enforcing accounting and auditing policy to enhance the transparency and relevancy of 

financial reporting. The office also works to improve the professional performance of 

public company auditors in order 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 regulation by the Public Company Accounting 

Oversight Board (PCAOB), as required by the Sarbanes-Oxley Act of 2002. 

In FY 2009, OCA will continue to oversee the FASB’s accounting standard setting 

activities, including ongoing major projects to simplify and codify accounting standards. 

The office plans to continue evaluating the recommendations of the SEC’s Advisory 

Committee on Improvements in Financial Reporting and to develop recommendations for 

Commission action. OCA also will continue to monitor the FASB’s implementation of a 

more principles-based approach to setting accounting standards. 

The office will continue to address issues relating to the ongoing convergence efforts 

between the International Financial Reporting Standards as issued by the International 

Accounting Standards Board (IFRS) and U.S. generally accepted accounting principles 

(GAAP). OCA also intends to support the newly formed Office of Interactive Disclosure 

as part of the agency’s eXtensible Business Reporting Language (XBRL) initiative, as 

well as conduct oversight of the PCAOB, which is expected to conduct quality reviews of 

about 350 firms, a 13 percent increase over FY 2008. 

-42-
Office of Investor Education and Advocacy 

Executive Summary 

FY 2007 

Actual

FY 2008 

Enacted

FY 2009 

Request 

FTE: Headquarters 65 71 69 

FY 2009 FTE by SEC Strategic Goal 

Goal 1 Goal 2 Goal 3 Goal 4 

Enforce 

Compliance 

with Federal 

Securities Laws 

Promote Healthy 

Capital Markets 

Foster Informed 

Investment 

Decisionmaking 

Maximize the 

use of SEC 

Resources 

69 

The Office of Investor Education and Advocacy (OIEA) serves as the SEC’s primary 

point of contact for tens of thousands of investors with questions about the securities 

industry and where to find information regarding products, issuers, and industry 

participants or with complaints about the possible mishandling of their investments by 

securities professionals. OIEA also carries out the SEC’s investor education program and 

handles requests for public and non-public information. 

In FY 2009, the office anticipates that continuous improvements in internal processes will 

increase the efficiency of its investor advocacy and Freedom of Information Act/Privacy 

Act programs. OIEA expects to receive approximately 99,500 new investor complaints, 

questions, and other contacts, including public information inquiries, and expects to close 

approximately 85 percent of investor assistance matters within seven days and 97 percent 

within 30 days. Additionally, OIEA plans to significantly reduce the number of pending 

FOIA requests as it works towards its target of eliminating FY 2005 and FY 2006 

backlogs by the end of FY 2010. 

The office will continue to implement the SEC’s investor education programs, which will 

focus on educating seniors about investments commonly marketed to them and providing 

tips for detecting and avoiding potential frauds and scams. Investors reached through 

public appearances will decrease as the office focuses on more cost effective channels 

-43-
Office of International Affairs 

Executive Summary 

FY 2007 

Actual

FY 2008 

Enacted

FY 2009 

Request 

FTE: Headquarters 28 28 27 

FY 2009 FTE by SEC Strategic Goal 

Goal 1 Goal 2 Goal 3 Goal 4 

Enforce 

Compliance 

with Federal 

Securities Laws 

Promote Healthy 

Capital Markets 

Foster Informed 

Investment 

Decisionmaking 

Maximize the 

use of SEC 

Resources 

12 11 4 

The Office of International Affairs (OIA) advises agency staff on developing and 

modernizing regulatory policy to reflect the increasingly international nature of securities 

activity, providing technical assistance to emerging markets, and fostering cross-border 

enforcement cooperation. Additionally, OIA advises agency staff on ways to promote 

comprehensive transparency and disclosure, and develops mechanisms to coordinate the 

supervision of internationally-active U.S. firms. 

In FY 2009, OIA will work with the Office of Chief Accountant and Division of 

Corporation Finance to promote convergence between U.S. generally accepted 

accounting principles and International Financial Reporting Standards as issued by the 

International Accounting Standards Board (IFRS), as well as advance initiatives, such as 

information sharing between regulators, regarding the use and application of IFRS. The 

office also will work to promote mutual recognition between nations of each other’s 

oversight of exchanges, broker-dealers, investment advisers, and asset managers. OIA 

will continue to support the Division of Enforcement, responding to an estimated 615 

inquiries seeking the assistance of foreign authorities, and participate in about 350 

international policy matters to promote high regulatory standards. 

-44-
Office of Economic Analysis 

Executive Summary 

FY 2007 

Actual

FY 2008 

Enacted

FY 2009 

Request 

FTE: Headquarters 24 29 29 

FY 2009 FTE by SEC Strategic Goal 

Goal 1 Goal 2 Goal 3 Goal 4 

Enforce 

Compliance 

with Federal 

Securities Laws 

Promote Healthy 

Capital Markets 

Foster Informed 

Investment 

Decisionmaking 

Maximize the 

use of SEC 

Resources 

8 17 4 

The Office of Economic Analysis (OEA) is the chief adviser to the Commission and its 

staff on all economic and empirical issues associated with the SEC’s activities. OEA 

produces high-quality analyses that address the economic issues associated with the 

regulation of the financial markets and conveys that knowledge to those making policy 

decisions. 

In FY 2009, OEA will work with the divisions to identify upcoming rulemaking projects, 

with the goal of becoming involved at an early stage. This effort will ensure that 

economic and quantitative analysis will become a more integral component of the 

rulemaking process. In FY 2008 and FY 2009, the office expects to provide support for 

ongoing rulemaking activity in areas such as corporate governance, executive 

compensation, international financial accounting standards, proxy solicitation and 

shareholder voting, and market data fees. The staff expects to review about 75 

Commission and SRO rules and to conduct around 70 regulatory flexibility analyses, the 

same levels as in 2008. 

OEA plans to continue providing analytical support to enforcement staff, including for 

structuring distribution plans set up as a result of certain settlement actions. The office 

also plans to help inspection staff develop tools to monitor broker-dealers, exchanges, and 

investment companies and advisers. Additionally, OEA will continue to identify data 

analyses that help the agency gauge risks, assess regulatory alternatives, measure the 

impact of previous rule changes, and otherwise further the mission of the agency. 

-45-
Office of Risk Assessment 

Executive Summary 

FY 2007 FY 2008 FY 2009 

Actual Enacted Request 

FTE: Headquarters 2 4 4 

FY 2009 FTE by SEC Strategic Goal 

Goal 1 Goal 2 Goal 3 Goal 4 

Enforce 

Compliance 

with Federal 

Securities Laws 

Promote Healthy 

Capital Markets 

Foster Informed 

Investment 

Decisionmaking 

Maximize the 

use of SEC 

Resources 

4 

The Office of Risk Assessment (ORA) is responsible for coordinating the SEC’s risk 

management program. ORA focuses on risk issues across the corporate and financial 

sector, including issues relevant to corporate disclosure, market operation, sales practices, 

new product innovation, and corporate governance. In FY 2009, the office plans to 

continue developing new approaches for risk assessment and strengthening coordination 

with the various offices and divisions. 

-46-
Office of the Administrative Law Judges 

Executive Summary 

FY 2007 

Actual

FY 2008 

Enacted

FY 2009 

Request 

FTE: Headquarters 10 11 11 

FY 2009 FTE by SEC Strategic Goal 

Goal 1 Goal 2 Goal 3 Goal 4 

Enforce 

Compliance 

with Federal 

Securities Laws 

Promote Healthy 

Capital Markets 

Foster Informed 

Investment 

Decisionmaking 

Maximize the 

use of SEC 

Resources 

11 

Pursuant to the Administrative Procedure Act and the 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 the 

protection of investors. The hearings are conducted in a manner similar to non-jury trials 

in the federal district courts. 

In FY 2009, the administrative law judges plan to dispose of roughly 85 proceedings and 

issue approximately 20 initial decisions. 

-47-
Agency Direction and Administrative Support 

FY 2007 FY 2008 FY 2009 

Actual Enacted Request 

FTE: Headquarters 

Office of Executive Staff 38 36 34 

Office of Public Affairs 7 8 8 

Office of the Secretary 42 42 42 

Agency Direction 87 86 84 

Office of the Executive Director 6 7 7

 Office of Financial Management 55 57 56

 Office of Human Resources 61 63 60

 Office of Administrative Services 85 87 86 

Office of Information Technology 123 129 124 

Office of Equal Emp. Opportunity 9 9 9 

Office of the Inspector General 9 9 9 

Total 435 447 435 

Cost: Salaries and Benefits ($000) $60,985.1 $62,607.0 $63,794.3 

 Non-Personnel Expenses ($000) 37,433.3 35,262.3 35,097.8 

Total Costs ($000) $98,418.4 $97,869.3 $98,892.1 

This section of the FY 2009 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 Executive Director: develops and executes agency management policies. 

The Office oversees the allocation and utilization of agency resources, promotes 

management controls and financial integrity, and manages administrative support 

functions. 

Office of Information Technology: manages the Commission’s IT program including 

application development, user support, capital planning, security, and enterprise 

architecture. 

Office of Equal Employment Opportunity: ensures that employees and applicants for 

employment have equal opportunity in employment. 

Office of the Inspector General: conducts internal audits of Commission operations and 

internal investigations into allegations of misconduct by staff or contractors. 

-48-
Agency Direction 

Executive Summary 

FY 2007 FY 2008 FY 2009 

Actual Enacted Request 

FTE: Headquarters 

Office of Executive Staff 38 36 34 

Office of Public Affairs 7 8 8 

Office of the Secretary 42 42 42 

Total 87 86 84 

FY 2009 FTE by SEC Strategic Goal 

Goal 1 Goal 2 Goal 3 Goal 4 

Enforce 

Compliance 

with Federal 

Securities Laws 

Promote Healthy 

Capital Markets 

Foster Informed 

Investment 

Decisionmaking 

Maximize the 

use of SEC 

Resources 

61 7 11 5 

Agency Direction is comprised of the Commissioners and their staff, as well as the Office 

of the Secretary, the Office of Legislative and Intergovernmental Affairs (OLIA), and the 

Office of Public Affairs (OPA). The Commissioners’ offices address the wide array of 

legal, financial, managerial, legislative, and economic issues encountered in the 

administration of the federal securities laws. The Office of the Secretary schedules 

Commission meetings; prepares and maintains records of Commission actions; reviews 

documents submitted to the Commission for action; and reviews and issues Commission 

orders, opinions, and releases. OLIA works with Members of Congress, state and local 

officials, and their staff on issues affecting the SEC and is responsible for the timely 

processing of all correspondence sent to the Chairman and all congressional 

correspondence sent to the Commission. OPA coordinates relations with the media, the 

general public, and foreign visitors. 

In fulfilling the SEC’s mission to protect investors; maintain fair, orderly, and efficient 

markets; and facilitate capital formation, in FY 2009 the Commission anticipates holding 

about 75 meetings and considering about 725 calendar items and 500 seriatim actions, 

including enforcement actions, rule proposals, and other items related to the 

administration of the federal securities laws. 

OLIA will coordinate the preparations for about 17 congressional testimonies and handle 

approximately 7,500 telephone and e-mail inquiries from congressional staff. OPA 

expects to receive about 45,000 media inquiries and draft and distribute about 270 news 

releases. 

-49-
Office of the Executive Director 

Executive Summary 

FY 2007 FY 2008 FY 2009 

Actual Enacted Request 

FTE: Headquarters 

Office of the Executive Director 6 7 7 

Office of Financial Management 55 57 56 

Office of Human Resources 61 63 60 

Office of Administrative Services 85 87 86 

Total 207 214 209 

FY 2009 FTE by SEC Strategic Goal 

Goal 1 Goal 2 Goal 3 Goal 4 

Enforce 

Compliance 

with Federal 

Securities Laws 

Promote Healthy 

Capital Markets 

Foster Informed 

Investment 

Decisionmaking 

Maximize the 

use of SEC 

Resources 

209 

The Office of the Executive Director (OED) has primary responsibility for the Office of 

Financial Management (OFM), Office of Human Resources (OHR), and Office of 

Administrative Services (OAS). 

Financial Management: OFM will continue to prepare financial and managerial reports 

while improving transparency, and the effectiveness and efficiency of internal controls 

over financial reporting. System enhancements anticipated to be deployed through FY 

2009 will allow SEC to achieve full integration of budget, performance, and financial 

management systems facilitating better performance management and decision making. 

Human Resources: OHR will complete the implementation of strategically integrated 

human capital systems that should improve the coordination and information flow among 

the different aspects of the agency’s human capital planning, and align the SEC with 

Human Capital Assessment and Accountability Framework principles. 

Administrative Services: OAS will continue to focus on refining its procurement system, 

enhancing agency emergency preparedness plans, and continuing efforts to strengthen 

physical security. 

-50-
Office of Information Technology 

Executive Summary 

FY 2007 

Actual

FY 2008 

Enacted

FY 2009 

Request 

FTE: Headquarters 123 129 124 

FY 2009 FTE by SEC Strategic Goal 

Goal 1 Goal 2 Goal 3 Goal 4 

Enforce 

Compliance 

with Federal 

Securities Laws 

Promote Healthy 

Capital Markets 

Foster Informed 

Investment 

Decisionmaking 

Maximize the 

use of SEC 

Resources 

124 

The Office of Information Technology (OIT) supports the agency’s use of technology to 

enhance agency-wide mission performance. OIT also ensures that the agency supports 

the President’s Management Agenda pertaining to information technology (IT), the 

Clinger-Cohen Act, and other elements of the federal government’s IT governance 

practices. 

In FY 2009, OIT plans to complete several significant initiatives begun in FY 2007 and 

FY 2008. The office also will leverage available data and systems by focusing on 

improving workflow and business process management, as well as increasing use of 

interactive data. 

Electronic Data Gathering and Retrieval (EDGAR) and Disclosure Management: OIT 

will lead the agency’s transition to a more modernized technical architecture for the 

EDGAR system. To help investors and agency staff better use data from SEC filings, 

OIT plans to convert additional types of information to interactive data formats, such as 

eXtensible Business Reporting Language (XBRL). The office also expects to use 

interactive data to revise and simplify the filings of corporate issuers and mutual funds. 

Enforcement and Examination Management: The office plans to upgrade the 

enforcement and examination programs’ core tracking systems. As a result, managers 

will have better access to performance and utilization information so they can direct 

resources effectively, while staff will have better tools for managing their workflow. 

Internal Process Improvements and Employee Productivity: The office plans to 

supplement enhancements to the agency’s financial systems and to focus on 

improvements to the systems supporting human resources management, including 

performance management. 

-51-
Office of Equal Employment Opportunity 

Executive Summary 

FY 2007 FY 2008 FY 2009 

Actual Enacted Request 

FTE: Headquarters 9 9 9 

FY 2009 FTE by SEC Strategic Goal 

Goal 1 Goal 2 Goal 3 Goal 4 

Enforce 

Compliance 

with Federal 

Securities Laws 

Promote Healthy 

Capital Markets 

Foster Informed 

Investment 

Decisionmaking 

Maximize the 

use of SEC 

Resources 

9 

The Office of Equal Employment Opportunity (EEO) oversees the agency’s compliance 

with federal laws that prohibit employment discrimination based on age, color, disability 

status, gender, national origin, race, religion, protected genetic information, or sexual 

orientation, as well as discriminatory retaliation against individuals for participating in 

the EEO process or opposing discrimination. The office also ensures compliance with the 

requirements of the No FEAR Act of 2002. The EEO immediately and appropriately 

responds to any alleged violations of EEO laws, such as harassing conduct or hostile 

work environments. 

The SEC will strive to maintain its position as an “employer of choice” by offering pay 

parity, flexible schedules, and improved benefits. In support of this effort, the office has 

worked to create and support a work environment in which employees are personally 

satisfied, receive fair treatment, have opportunities for advancement, and therefore are 

motivated to remain with the agency. In FY 2009, preventive programs will remain a top 

priority, and EEO will continue to implement the various diversity programs launched by 

the SEC-wide Diversity Initiative. 

-52-
Office of the Inspector General 

Executive Summary 

FY 2007 FY 2008 FY 2009 

Actual Enacted Request 

FTE: Headquarters 9 9 9 

FY 2009 FTE by SEC Strategic Goal 

Goal 1 Goal 2 Goal 3 Goal 4 

Enforce 

Compliance 

with Federal 

Securities Laws 

Promote Healthy 

Capital Markets 

Foster Informed 

Investment 

Decisionmaking 

Maximize the 

use of SEC 

Resources 

9 

The rapid pace of significant internal and external changes that affect the work of the 

SEC drives the work of the Office of the Inspector General (OIG). 

The OIG will continue its focus on improving agency operations through evaluations and 

inspections. It also will enhance staff and agency integrity by investigating allegations of 

employee and contractor misconduct. 

By conducting evaluations, inspections, and investigations, the OIG supports the efforts 

of the Congress and the SEC to fulfill their responsibilities and achieve their goals and 

objectives with respect to oversight of the securities industry. 

-53-