Staff at US securities regulator told to seek approval for probes

Lawyers at the US Securities Exchange Commission (SEC) have been told they need to seek permission from the politically appointed leadership before formally launching probes, two sources briefed on the matter said, in a marked change in procedure that could slow down investigations.

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NEW YORK -

The change, which has not been previously reported, was made under new leadership at the SEC since President Donald Trump took office, the sources said.

Typically, five commissioners, including the chair, oversee the independent agency. Currently, the Commission has three members - two Republicans and one Democrat. Commissioners are appointed by the president.

In recent days, some enforcement staff have been told that they will need to seek the Commission's approval for all formal orders of investigation, which are required to issue subpoenas for testimony or documents, the sources said.

Previously, such authority had been delegated to lower-level staff. The Commission had the right of refusal - something that it did not always exercise.