SEC Sets New Policy on Subpoena’s to Journalists

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The Securities and Exchange Commission adopted a new policy on subpoenas to journalists, saying it would issue a subpoena only in rare circumstances and only after it had exhausted other investigative avenues. The policy change came a month after the SEC’s chairman, Christopher Cox, criticized the agency’s enforcement division for subpoenaing two reporters as part of an investigation into a possible conspiracy by a hedge fund and a research firm to manipulate stock prices. Cox said the purpose of the new policy is to make sure the agency doesn’t “use journalists and journalism as our first source of information in our law enforcement function.” (4/13/06)