UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

STATION PLACE
100 F STREET, NE
WASHINGTON, DC 20549-2736

Office of FOIA Services

November 19, 2010

Ms. Anne Weismann

CREW
1400 Eye Street, NW, Suite 450
Washington, DC 20005

Re: Freedom of Information Act (FOIA), 5 U.S.C. § 552

Request No. 10-04442-FOIA

Dear Ms. Weismann:

This letter is a final response to your request, dated

February 19, 2010, and received in this office on February 22,
2010, for the following information concerning post-Madoff
reforms:

1. Documents sufficient to show all steps the SEC has taken

since December 11, 2008 to implement policies that require
each investment advisor to hire an independent public
accountant to conduct annual “surprise exams” of the
investment adviser’s books;
2. Documents sufficient to show all steps the SEC has taken
since December 11, 2008 to implement policies that require
each investment advisor to hire an independent third party
to assess the steps the adviser has taken to ensure his/her
clients’ investments are safe;
3. Documents sufficient to show all steps the SEC has taken
since December 11, 2008 to strengthen oversight of “back
office” personnel at broker-dealer firms, and raise the
professional standards required of such personnel;
4. Documents sufficient to show all steps the SEC has taken
since December 11, 2008 to improve communication and
coordination between the Office of Compliance, Inspections
and Examinations and the Enforcement Division;
5. Documents sufficient to show all steps the SEC has taken
since December 11, 2008 to improve communication and
coordination between the central office and the regional
offices;
Ms. Anne Weismann 10-04442-FOIA
November 19, 2010
Page 2

6. Documents sufficient to show all steps the SEC has taken

since December 11, 2008 to establish procedures requiring
supervisors to take action against firms that intimidate or
interfere with the work of examiners;
7. Documents sufficient to show all steps the Enforcement
Division has taken since December 11, 2008 to implement
policies ensuring investigators understand what information
provided by their targets needs to be corroborated by
independent third parties such as the Financial Industry
Regulatory Authority and the Depository Trust Company;
8. Documents sufficient to show all steps the SEC has taken
since December 11, 2008 to implement procedures ensuring
better communication and information sharing between the
SEC and other financial regulators such as the Federal
Reserve, the Federal Deposit Insurance Corporation, the
Commodity Futures Trading Commission, and the Office of the
Comptroller of the Currency.

As we advised you in a partial response dated July 1, 2010,

we note that you have not requested all documents regarding
these changes, and we have endeavored to select the documents
that best show the steps the Commission has taken in the areas
you have identified.

In response to No. 1 of your request, we refer you to the

additional publicly available information located at the
following Commission websites:

• http://www.sec.gov/divisions/investment/custody_faq_03
0510.htm, Staff Responses to Questions About the
Custody Rule, (updated as of May 20, 2010); and
• http://www.sec.gov/info/smallbus/secg/custody_rule-
secg.htm, Custody of Funds or Securities of Clients by
Investment Advisers: A Small Entity Compliance Guide;
and
• http://www.sec.gov/rules/interp/2009/ia-2969.pdf,
Commission Guidance Regarding Independent Public
Accountant Engagements Performed Pursuant to Rule
206(4)-2 Under the Investment Advisers Act of 1940,
Release Nos. IA-2969; FR-81, (Dec. 30,
2009)(interpretive release).
Ms. Anne Weismann 10-04442-FOIA
November 19, 2010
Page 3

In response to No. 4 of your request, access is denied to a

single page draft Memorandum of Understanding under 5 U.S.C. §
552(b)(5), 17 CFR § 200.80(b)(5). Since this document forms an
integral part of the predecisional process it is protected from
release by the deliberative process privilege embodied in FOIA
Exemption 5.

In response to No. 6 of your request, access is denied to

twelve (12) pages under 5 U.S.C. § 552(b)(2) and (8), 17 CFR §
200.80(b)(2) and (8). These records are protected under FOIA
Exemption 2, since they relate solely to the internal rules and
practices of the Commission and, if released, would
significantly risk circumvention of statutes or regulations and
impede the effectiveness of the Commission’s law enforcement
activities. The information is also protected from release
under Exemption 8 since it relates to examination, operating or
condition reports prepared by, on behalf of, or for the use of
the Commission, in connection with its supervision and
regulation of financial institutions.

In response to No. 8 of your request, access is granted to

a fourteen (14) page Mutual Access Agreement, a 320 page
document entitled “Securities & Commodities Fraud Working Group
Meeting” dated April 12, 2010, and ten (10) pages comprised of
an Executive Order, and Financial Fraud Task Force Agenda
records.

You have the right to appeal our decision to our General

Counsel under 5 U.S.C. § 552(a)(6), 17 CFR § 200.80(d)(5) and (6).
Your appeal must be in writing, clearly marked "Freedom of
Information Act Appeal," and should identify the requested
records. The appeal may include facts and authorities you
consider appropriate.

Send your appeal to the FOIA/Privacy Act Office of the

Securities and Exchange Commission located at Station Place, 100 F
Street NE, Mail Stop 2736, Washington, D.C. 20549, or deliver it
to Room 1120 at that address. Also, send a copy to the SEC
Office of the General Counsel, Mail Stop 9612, or deliver it to
Room 1120 at the Station Place address.
Ms. Anne Weismann 10-04442-FOIA
November 19, 2010
Page 4

If you have any questions, please contact me by email at

sifordm@sec.gov or by telephone at (202) 551-7201. If you
cannot reach me please contact Ms. Celia Winter by calling (202)
551-7900 or by sending an e-mail to foiapa@sec.gov.

Sincerely,

Mark P. Siford
FOIA/Privacy Act Attorney Advisor

Enclosure