SEC's Lori Richards to step down

Lori Richards, the SEC's first and only director of Compliance Inspections and Examinations plans to leave the SEC after more than two decades, the Securities and Exchange Commission announced today.
JUL 08, 2009
Lori Richards, the SEC’s first and only director of compliance inspections and examinations, plans to leave her job after more than two decades, the Securities and Exchange Commission announced today. She has been director of the Office of Compliance Inspections and Examinations since it was created by former SEC chairman Arthur Levitt in 1995. As director, Ms. Richards managed the examination program for investment advisers, mutual funds, broker-dealers, hedge fund managers, clearing agencies, transfer agents, trading markets, self-regulatory organizations and credit rating agencies. Among the initiatives she oversaw was a series of targeted exam sweeps focused on emerging compliance risks. Ms. Richards also created a risk-assessment program to focus on firms judged to be at higher risk of compliance problems and led efforts to enhance oversight of SEC-registered firms. But she came under increased criticism recently, taking heat for the SEC’s arm’s-length monitoring of failing investment banks and for the failure to detect the massive Ponzi scheme perpetrated by Bernard L. Madoff. “I’ve had the honor and privilege of knowing and working with Lori for many years and have always appreciated her dedication, leadership and integrity,” SEC Chairman Mary Schapiro said in a release. Prior to becoming director of OCIE, Ms. Richards was an executive assistant and senior adviser to Mr. Levitt on policy and legal matters. Prior to that, she was associate regional administrator for enforcement in the SEC’s Los Angeles office, and she held other positions in the enforcement program in Los Angeles from 1985 through 1994. Ms. Richards has not yet determined yet what she will be doing next, according to SEC spokesman John Nester. She is scheduled to leave the agency Aug. 7. Associate OCIE director and chief counsel John Walsh will serve as acting director until a permanent replacement is named.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.