The Dodd-Frank Wall Street Reform Act requires the SEC to establish 5 new offices, 4 of which will report directly to Chairman Schapiro.  All five are described below, after the jump.

• Office of Credit Ratings.
• Office of Municipal Securities.
• Whistleblower Office.
• Office of the Investor Advocate.
• Office of Minority and Women Inclusion.

    Office of Credit Ratings.   This new office will conduct annual exams of each nationally recognized statistical rating organization ("NRSRO"), report on the collective results of those exams, and conduct studies relating to credit rating agencies regarding, among other things, NRSRO independence, conflicts of interest, and standardizing ratings terminology.  The SEC is in the process of establishing this office, and are actively recruiting for its new director.  The agency also is identifying the staff from existing divisions who should be transferred to this new office - 25 new examination positions have been posted.

    Office of Municipal Securities.    This office will administer the rules pertaining to B/D's. advisors, investors, and issuers of municipal securities.  It will coordinate with the MSRB on rulemaking and enforcement actions.  The new office, which will be created by the end of October, will transfer existing staff performing these duties to that office;  the SEC also will begin recruiting for the new director, who will report directly to the Chairman.  This office will also oversee compliance with the registration of municipal advisors, which became effective on 10/1.  As of now, it is unlawful for any municipal advisor to provide advice to a municipality unless registered with the Commission. 

    Whistleblower Office.   The primary functions of the new office will include: (i) performing intake, tracking and recordkeeping of whistleblower tips;  (ii) overseeing the review process for eligible whistleblower claims and presenting recommendations concerning whistleblower awards;  and, (iii) communicating with the general public, the SEC, and reporting to Congress on the whistleblower program.  The SEC has posted a job announcement for the head of this new office, and it expects the office to include a senior special counsel and at least 4 additional employees.  The office will be located within the Division of Enforcement and will work closely with that division's Office of Market Intelligence, which is dedicated to the handling of tips, complaints, and referrals.  

    Office of the Investor Advocate.   This office, to be headed by an Investor Advocate who reports directly to the Chairman, will assist retail investors in resolving significant problems they may have with the SEC or with SROs.  The Investor Advocate also will identify areas in which investors would benefit from changes in Commission regulations or SRO rules; identify problems that investors have with financial service providers and investment products; and analyze the potential impact on investors of proposed Commission regulations and SRO rules.  The Investor Advocate will report to Congress annually on its activities.  The Investor Advocate also must hire an Ombudsman, whose activities will be included in the Advocate's reports to Congress.  The SEC must adopt regulations establishing procedures for responding to all recommendations submitted to the Commission by the Investor Advocate.   The SEC is actively recruiting for this position.

    Office of Minority and Women Inclusion.   This office will be responsible for all matters of the agency relating to diversity in management, employment, and business activities, other than enforcement of civil rights laws.  The director of this Office, who will report to the Chairman, will develop and implement standards for:  (i) equal employment opportunity and the racial, ethnic, and gender diversity of the workforce and senior management of the SEC;  (ii) increased participation of minority-owned and women-owned businesses in the programs and contracts of the agency, including standards for coordinating technical assistance to such businesses; and, (iii)  assessing the diversity policies and practices of entities regulated by the SEC.

For further details, click onto:   [ SEC Chairman Speech (pp 4-10), 9/30 ]