*A new academic study considering the potential of a “revolving door” at the U.S. Securities and Exchange Commission (SEC) influencing outcomes indicates that no such evidence exists, based on its limited data set.
SEC revolving door incentives do not appear to undermine the prosecution
When considering accounting misrepresentations and civil trials, the study says that “revolving door incentives do not appear to undermine the prosecution of civil cases against accounting misrepresentations.”
Revolving doors result in regulated firms hiring lawyers from the ranks of their regulators and regulators, in turn, hiring from the ranks of lawyers who battle against them.
Calling revolving doors “natural,” the report advances the argument that the SEC needs industry...
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