US SEC proposes post-Madoff broker oversight plan

U.S securities brokers would be more closely scrutinized by auditors and be subject to stricter rules on how they handle their customers' assets under a plan proposed by federal regulators on Wednesday.
The proposal by the Securities and Exchange Commission is meant to improve oversight of broker-dealers in the wake of Bernard Madoff's massive Ponzi scheme.
The SEC failed to catch Madoff's scheme despite multiple tips and agency examinations of his operations. Investors are still seeking to recover billions of dollars.
"When investors hand their assets over to a broker-dealer, they trust that their broker-dealer will hold and invest the assets as directed," SEC Chairman Mary Schapiro said about the need for the proposal.
The SEC voted 5-0 to put the proposal out for public comment.