Last Thursday, the SEC's Office of Inspector General sent this letter to Democratic Sens. Elizabeth Warren (MA), Robert Menendez (NJ), Sherrod Brown (OH), and Brian Schatz (HI) clearing SEC Commissioner Piwowar of wrongdoing during his January - May tenure as Acting Chair.
The letter was responsive to the Senate Dems' call for review (which we previously reported on here) of specific actions then-Acting Chair Piwowar had taken regarding the Conflict Minerals and Pay Ratio rules in the form of temporary enforcement/compliance relief, and his limitation of delegation authority to issue Formal Orders of Investigation to the Director of Enforcement, which they asserted lacked adequate justification, exceeded his authority, and violated procedural requirements - among other things.
The Inspector General's letter - which is instructive as respects its recap and analysis of Piwowar's actions relative to the SEC chair's authority generally (Acting and otherwise), quorum requirements, and the types of actions constituting "agency actions" requiring Commission approval under the APA - concludes:
Based on our review and analysis of the issues raised in your March 29, 2017, letter as well as the laws currently governing the SEC’s organization, conduct, and procedures, we are unable to conclude that Commissioner Piwowar exceeded his authority during his 3-month tenure as SEC Acting Chairman. We are likewise unable to conclude that he violated other procedural requirements under current law, or that his actions lacked adequate justification. Moreover, we are unable to conclude that Commissioner Piwowar’s actions may serve to undermine the SEC’s mission or could potentially prove to be a waste of the SEC staff’s time and resources.