By Sarah N. Lynch
WASHINGTON, May 2 (Reuters) - The head of the U.S.
Securities and Exchange Commission's national examination
program is leaving the agency, in what marks the latest major
personnel change since Mary Jo White took over as head of the
SEC last month, the SEC said Thursday.
Carlo di Florio, who was hired more than three years ago to
help revamp the agency's examinations program in the wake of the
Bernard Madoff scandal, is leaving to lead a new risk and
strategy division at the Financial Industry Regulatory
Authority, the Wall Street industry-funded brokerage watchdog.
He will be replaced by Andrew Bowden, who currently serves
as deputy director of the SEC's Office of Compliance,
Inspections and Examinations (OCIE).
"Carlo has been an outstanding leader of the National Exam
Program and has made a lasting impact on the SEC by working with
his team to comprehensively strengthen the agency's examination
program," said White in a statement.
Di Florio was the second high-profile SEC official to
announce his departure on Thursday, and the latest in a string
of major staffing changes within the agency.
Earlier in the day, the SEC said it was also losing 13-year
veteran David Bergers, who heads the Boston Regional Office and
was also serving as deputy director of the Enforcement Division.
Last month, White also appointed former federal prosecutors
Andrew Ceresney and George Canellos to serve as co-directors of
the Enforcement Division, as well as White House attorney Anne
Small to be the new general counsel.
She is said to still be reviewing candidates for top
positions in the Trading and Markets Division. Candidates
include Joseph Lombard, an attorney who once advised former SEC
Chairman Arthur Levitt, and Virtu Financial LLC executive Chris
Di Florio was first named director of the OCIE in January
At the time the SEC was still under the gun for missing the
red flags about Bernard Madoff's $65 billion Ponzi scheme.
The year prior, the SEC's then-Inspector General David Kotz
had released a scathing investigative report which found that
SEC examiners had missed numerous opportunities to uncover
Madoff's fraud because they were too inexperienced and narrowly
focused in their reviews.
At one point, the report also found that two different
examinations were going on at the same time in different
offices. The examiners only learned of the duplication after
hearing it from Madoff himself.
Di Florio was credited with breathing new life into the
He nationalized the examinations structure at the SEC to
help improve communications and the flow of information, and
created a risk-focused examinations strategy.
He also took a similar approach that former SEC Enforcement
Director Robert Khuzami took when revamping the Enforcement
Division by creating specialized working groups for derivatives,
hedge funds, private equity, valuation, structured products, and
market structure, among others.
In a separate announcement Thursday, FINRA said di Florio
will start his new job on June 24.
This is the second time this week that FINRA has snagged an
SEC alumnus for a new position there.
On Tuesday FINRA said it hired Jonathan Sokobin, who once
served as acting director of the SEC's division of risk,
strategy and financial innovation and most recently held a
high-level position at an office in the U.S. Treasury