The
Securities and Exchange Commission (SEC)
appointed Katherine Reilly as Acting Inspector General (IG), filling a crucial
oversight role at the federal financial regulator, the agency announced this
week.
Reilly, who
currently serves as Deputy Inspector General, will replace Deborah Jeffrey, who
is retiring after leading the office since 2023.
The
Inspector General position holds significant influence at the SEC as an
independent watchdog that reports directly to both the Commission and Congress,
ranking among the agency’s top leadership positions despite operating outside
the policy-making hierarchy.
This gives
the Acting IG high visibility and influence, especially when misconduct, waste,
or abuse is uncovered.
“Our
Inspector General’s office champions transparency and seeks to root out
redundancy and overlap to ensure our agency is running as efficiently and
effectively as possible,” SEC
Chairman Paul S. Atkins said in a statement. “Katherine possesses the
experience and expertise to continue these oversight efforts.”
Professional Experience
Reilly
brings extensive experience to the role, having joined the SEC’s Office of
Inspector General in 2020 as Counsel to the Inspector General. She previously
served in a temporary Acting Inspector General capacity before Jeffrey’s
arrival and most recently as Acting Deputy Inspector General for Investigations
from December 2022 to March 2025.
Her
government service includes positions at multiple federal agencies. Reilly
began her career as an antitrust lawyer at the Federal Trade Commission before
moving to private practice. She later worked at the U.S. Postal Service Office
of Inspector General, rising to Director of Legal Services, followed by roles
at the Department of Justice’s Executive Office for Immigration Review.
Reilly
holds undergraduate and law degrees from The University of Texas at Austin and
a Master of Laws degree from The University of Melbourne in Australia.
Office of Inspector
General
The SEC’s
Office of Inspector General operates independently to oversee the agency’s
programs and operations through audits and investigations. The position is
appointed without regard to political affiliation, focusing instead on
candidates with expertise in accounting, auditing, financial analysis, law,
management analysis, public administration, or investigations.
Jeffrey,
the outgoing Inspector General, served at the SEC for two years after an
11-year tenure as inspector general at AmeriCorps. She previously worked in
private law practice for 25 years and is a graduate of Johns Hopkins University
and Harvard Law School, where she was Editor-in-Chief of the Harvard Civil
Rights-Civil Liberties Law Review.
The
transition comes as the SEC continues its work regulating securities markets
and protecting investors under Chairman Atkins’ leadership.
SEC Under Trump
In addition
to appointing Atkins as the new SEC Chairman, following a two-month interim
term served
by Chief Mark Uyeda, the agency under Donald Trump’s renewed administration
may see a reduction of about 10% of its current workforce.
This comes
as part of a broader initiative to shrink employment across the federal
government and cut costs in areas Trump has criticized as overly bloated and
funded by taxpayers.
As reported
by FinanceMagnates.com two months ago, around
500 employees have reportedly accepted $50,000 voluntary buyout packages.
These exits would amount to roughly 10% of the SEC’s total staff of
approximately 5,000, according to sources familiar with the matter.
The
Securities and Exchange Commission (SEC)
appointed Katherine Reilly as Acting Inspector General (IG), filling a crucial
oversight role at the federal financial regulator, the agency announced this
week.
Reilly, who
currently serves as Deputy Inspector General, will replace Deborah Jeffrey, who
is retiring after leading the office since 2023.
The
Inspector General position holds significant influence at the SEC as an
independent watchdog that reports directly to both the Commission and Congress,
ranking among the agency’s top leadership positions despite operating outside
the policy-making hierarchy.
This gives
the Acting IG high visibility and influence, especially when misconduct, waste,
or abuse is uncovered.
“Our
Inspector General’s office champions transparency and seeks to root out
redundancy and overlap to ensure our agency is running as efficiently and
effectively as possible,” SEC
Chairman Paul S. Atkins said in a statement. “Katherine possesses the
experience and expertise to continue these oversight efforts.”
Professional Experience
Reilly
brings extensive experience to the role, having joined the SEC’s Office of
Inspector General in 2020 as Counsel to the Inspector General. She previously
served in a temporary Acting Inspector General capacity before Jeffrey’s
arrival and most recently as Acting Deputy Inspector General for Investigations
from December 2022 to March 2025.
Her
government service includes positions at multiple federal agencies. Reilly
began her career as an antitrust lawyer at the Federal Trade Commission before
moving to private practice. She later worked at the U.S. Postal Service Office
of Inspector General, rising to Director of Legal Services, followed by roles
at the Department of Justice’s Executive Office for Immigration Review.
Reilly
holds undergraduate and law degrees from The University of Texas at Austin and
a Master of Laws degree from The University of Melbourne in Australia.
Office of Inspector
General
The SEC’s
Office of Inspector General operates independently to oversee the agency’s
programs and operations through audits and investigations. The position is
appointed without regard to political affiliation, focusing instead on
candidates with expertise in accounting, auditing, financial analysis, law,
management analysis, public administration, or investigations.
Jeffrey,
the outgoing Inspector General, served at the SEC for two years after an
11-year tenure as inspector general at AmeriCorps. She previously worked in
private law practice for 25 years and is a graduate of Johns Hopkins University
and Harvard Law School, where she was Editor-in-Chief of the Harvard Civil
Rights-Civil Liberties Law Review.
The
transition comes as the SEC continues its work regulating securities markets
and protecting investors under Chairman Atkins’ leadership.
SEC Under Trump
In addition
to appointing Atkins as the new SEC Chairman, following a two-month interim
term served
by Chief Mark Uyeda, the agency under Donald Trump’s renewed administration
may see a reduction of about 10% of its current workforce.
This comes
as part of a broader initiative to shrink employment across the federal
government and cut costs in areas Trump has criticized as overly bloated and
funded by taxpayers.
As reported
by FinanceMagnates.com two months ago, around
500 employees have reportedly accepted $50,000 voluntary buyout packages.
These exits would amount to roughly 10% of the SEC’s total staff of
approximately 5,000, according to sources familiar with the matter.
