Settling a long-standing controversy over the manner in which the SEC’s Administrative Law Judges historically have been appointed, i.e., by agency staff, the US Supreme Court held today in Lucia v SEC that the SEC’s ALJs are “Officers of the United States,” subject to the Appointments Clause – thus requiring appointment by the President, courts or department heads.
See our most recent prior report, these articles from the National Law Journal, Reuters, and the WSJ: here and here, this Ropes & Gray memo, and additional background on our SEC Enforcement page.