SEC says new law needed to protect information

Prior to the new law, those firms regulated by the SEC would refuse to provide needed documentation to examiners over concerns that it would eventually be publicly disclosed. 

The new law is "critical to our ability to develop a robust examination program that better protects investors," she wrote. 

"It will allow the SEC to gain access in a timely fashion to information and data that it otherwise may not receive, thereby further enhancing our ability to identify fraud and root out wrongdoing."

Kaufman said FOIA already contains the needed provisions. 

“FOIA already has exemptions in it to deal with such concerns.  If those exemptions need to be broadened, we should have done so with a scalpel,” he said. 

Shapiro noted that within the past several years, similar language has emerged and isn't new. Former SEC Chairman Chris Cox requested changes in 2006, the House passed a bill in 2008 with similar language and in July 2009 she provided lawmakers with proposals designed to better protect investors.

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