The Securities and Exchange Commission was not seeking a blanket exemption from public information laws when it asked Congress to include a little known provision in the Wall Street reform law, according to a letter it sent to lawmakers Friday.
Organizations such as the Society of American Business Editors and Writers have objected to the provision in the past week, saying it will hurt reporters’ ability to cover stories.
Annalyn Censky of CNNMoney.com writes, “The SEC responded to those concerns in its letters to Dodd and Frank on Friday, saying the exemption was merely meant to apply to documents related to routine examinations, in which companies will often reveal ‘sensitive and proprietary information’ including customer records, trading algorithms and company strategies.
“Without the exemption, the SEC said many companies would refuse to cooperate with such examinations out of fear that their private information may be made public. The FOIA exemption makes it harder for companies to refuse to participate in the examinations, the SEC.
“‘It will allow the SEC to gain access in a timely fashion to information and data that it otherwise may not receive, thereby further enhancing our ability to identify fraud and root out wrongdoing,’ Schapiro said in the letters.”
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