The CFA Institute has applauded the post-Madoff report released by the Securities and Exchange Commission’s Office of Inspector General and is calling for further action on investor protection reforms.

The SEC report, released last week, outlines the investigation of the Bernard Madoff Ponzi scheme by the Inspector General.

“The investigation will help the SEC learn from the past so that it can take appropriate actions in meeting its mission of protecting investors,” commented Kurt Schacht, managing director of the CFA Institute Centre for Financial Market Integrity. “We encourage the SEC and policymakers to continue to move forward on fixing the problems at hand.”

The CFA Institute Centre has participated in the regulatory reform process by co-sponsoring the Investors’ Working Group, an independent panel formed to provide the investors’ voice in the ongoing national debate about overhauling the U.S. system of financial regulation. In July, the group released a report with several recommendations for improving the inspection, operation and enforcement activities of regulators.

In particular, the group calls for regulators to have deeper knowledge and expertise, as well as enhanced independence through stable, long-term funding that meets their needs. In addition, the report recommends giving the SEC and the CFTC primary regulatory responsibility for derivatives trading.

“Congress and the Obama administration need to streamline and make more efficient the multiple agency structure we have for securities regulation, fix antiquated securities regulations, and provide resources that will ensure properly trained staff,” said Schacht.

The report also suggests that all investment managers of funds available to U.S. investors should be required to register with the SEC as investment advisers and be subject to oversight, and should have to make regular position disclosures to regulators on a real-time basis and to investors and the market on a delayed basis.

Investment advisors and brokers who provide investment advice to customers should also operate under a single, rigorous fiduciary standard, according to the working group.

Schacht noted that the CFA Institute Centre’s Asset Manager Code of Professional Conduct, which sets out critical obligations and responsibilities for all asset managers, now includes a risk management provision.

“These new guidelines establish a more detailed risk management process that identifies, monitors, and analyzes an asset manager’s risk position and exposure,” said Schacht. “We believe that investors should require their investment managers to adopt and verify their adherence to the AMC as a means of helping protect their interests and avoiding fraudulent advisors like Madoff.”