It has been reported that the Securities and Exchange Commission is to put in place two new policies aimed at avoiding a repeat of the Bernard L. Madoff fraud and addressing concerns that excessive compensation and ineffective oversight by corporate boards fueled the financial crisis. The first measure, passed unanimously by the commission, requires new oversight, including outside audits, of financial advisers. Some advise clients about where to invest their assets and also control those assets, as Madoff did. The rules seek to ensure that clients' assets are where advisers say they are.
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