SEC's Inspector General's Reporting Line The SEC is conforming its rules to the amended Inspector General Act of 1978 that requires the SEC Inspector General to report to and be under the general supervision of the full Commission. Independence of the Inspector General. However, while Section 8G(d)(1) of that same Act provides that “Each Inspector General shall report to and be under the general supervision of the head of the designated Federal entity," the rule states that

• [that same Inspector General] shall not report to, or be subject to supervision by, any other officer or employee of such designated Federal entity.”

Prior to the Dodd-Frank Reform Act, the IG Act defined the “head of the designated Federal entity” to mean, unless specifically designated by statute, the chief policy-making officer or board of the designated Federal entity as identified in a list published annually by the Director of the Office of Management and Budget (“OMB”). Replacing 'Chairman' with 'Full Commission'. OMB’s annual lists identified the “Chairperson” as the head of the SEC. Section 989B of the Dodd-Frank Act amended the IG Act to provide that the “head of the designated Federal entity” with a board or commission (such as the SEC) means “the board or commission of the designated Federal entity . . . .”  Accordingly, the Inspector General must now report to, and be under the general supervision of, the full Commission. These amendments conform the Commission’s rules that address the reporting line of the Commission’s Inspector General to the amendments made by the Dodd-Frank Act to the IG Act by replacing references to the “Chairman” in these rules with references to the “Commission”.  Section 8G(a)(4) of the IG Act defined the “head of the designated Federal entity” to mean, unless specifically designated by statute, the chief policy-making officer or board of the designated Federal entity as identified in a list published annually by the Director of the Office of Management and Budget (“OMB”). OMB’s annual lists identified the “Chairperson” as the head of the SEC. Section 989B of the Dodd-Frank Act amended the IG Act to provide that the “head of the designated Federal entity” with a board or commission (such as the SEC) means “the board or commission of the designated Federal entity . . . .” Accordingly, the Inspector General must now report to, and be under the general supervision of, the full Commission. For further details: [Release #34-66355, 2/8/12].