More than a year after being was accused of illegally destroying records of preliminary investigations, the SEC has yet to agree with government archivists on a conclusive retention policy.  This gravely concerns the Paul Wester, Jr., the chief records officer at the National Archives and Records Administration, or "NARA."

Mr. Wester wrote to the SEC that the absence of an approval plan for retaining records places SEC records at risk, regardless of any assurances from the Agency.  What has sparked this topic are documents known as "matters under investigation."  MUIs are inquiries that the SEC staff decided not to elevate into full investigations.  Such files usually contain “correspondence, interagency memoranda or other documents supporting a decision not to open a formal investigation," according to the SEC.

It's long been an SEC policy to dispose of MUI documents when the investigation in question has been closed.  Yet, an SEC employee who helps manage records disposition, Darcy Flynn, determined that the Agency's policy may have been violating federal law.  He took the information to the NARA, which began investigating the matter in July 2010. 

It remains unclear why or when the SEC began to dispose of MUI documents.  The commission's formal records retention policy guide, dating back to 1997, doesn't even mention preliminary inquiries files, let alone when they should be held or destroyed.  

For further details, go to:   [NY Times, 8/18/11]