The US Securities and Exchange Commission (SEC) has introduced an expanded ethics rule, which may ban its employees from having contacts with former colleagues.
The new rule, which is expected to be implemented from January 2014, will be applied to every employee who earns over $155,440 per year.
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Under the rule, the respective employees will be banned from contacting old colleagues for one year after leaving the commission.
SEC ethics counsel Shira Pavis Minton said the rule places us on even footing with our peer regulators and adds an additional layer of protection against even the appearance of impropriety when former employees take on new jobs.
Bloomberg reported that former SEC officials who have been affected by the ban include ex-enforcement chief Robert Khuzami, who is now working at Kirkland & Ellis, and former SEC chairman Mary Schapiro at Promontory Financial Group.
According to the news agency, law companies and investment banks hire top aides to SEC commissioners, enforcement attorneys and examiners of broker-dealers to help defend against investigations and advise on compliance.
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By GlobalDataA report by the Project on Government Oversight has revealed that over 400 SEC alumni filed disclosure statements say they planned to represent clients before the SEC from 2001 to 2010.
