A federal appeals court on Wednesday will consider whether Wall Street’s top cop has vested too much power in its in-house courts, a system that regulators expanded several years ago as they sought to speed enforcement actions against firms and individuals accused of fraud and wrongdoing.
The U.S. Court of Appeals for the District of Columbia Circuit will provide the latest forum for lawyers arguing over the legitimacy of the Securities and Exchange Commission’s administrative courts. The forums are run by officers who have career appointments, such as U.S. district judges, but are employees of the agency. The SEC’s judges are expected to independently oversee enforcement hearings even though the agency’s commissioners can reverse their decisions.
via Case to Examine Legitimacy of SEC’s In-House Courts – WSJ.