The SEC amended its rules to reflect that the Office of the Ethics Counsel is now a stand-alone Office of the Commission, and that the head of the Office, the Ethics Counsel, reports directly to the SEC Chairman. The change was promoted in September by SEC Inspector General H. David Kotz, whose office issued a report recommending, among other things, that the Commission’s Ethics Counsel report directly to the Chairman, rather than to the General Counsel.  One month later, Mary Schapiro implemented that recommendation and made the Office of the Ethics Counsel a stand-alone Office of the Commission.  Accordingly, the SEC has removed several references to oversight of the Ethics Counsel by the General Counsel. Furthermore, Monday's final rule amendments clarify that the Ethics Counsel, not the General Counsel, serves as Counselor to the Commission and its staff with regard to ethical and conflicts of interest questions, and acts as the Commission's liaison on such matters with the Office of Administrative and Personnel Management, the Office of the Inspector General and the Department of Justice. For further details, go to:   SEC Final Rule Release 34-65742, 11/14/11]