Three major regulatory agencies are planning on increasing staff levels in 2012, according to budget justifications released earlier this week.
The documents submitted to Congress by the SEC, CFTC and IRS explain the ways in which they'll use funds that were proposed in the Obama administration's budget. Collectively, the agencies plan on increasing headcount by just over 6,200 in 2012 and their budgets by $1.5 billion to ensure investment firms are in compliance with new regulations, oversee the derivatives market and curtail tax evasion, among other things.
The hiring plans are contingent upon Congress passing the budget.
SEC
The agency is requesting just over $1.4 billion for its 2012 budget, a $264 million (27%) increase over the level at which it's currently operating in fiscal year 2011.
The increase will allow the agency to support 4,827 positions (4,460 of them full-time), an increase of 780 (612 of them full-time) over fiscal year 2011 levels.
-- 312 for strengthening core SEC operations, like gathering market intelligence, monitoring the financial disclosures of large corporations and overseeing money market funds and specialized product.
-- 468 positions for the implementation of new rules stemming from the financial regulatory bill. Many of the hires will focus on the derivatives market, hedge funds and whistleblowing.
The hiring won't stop in 2012: The SEC believes 296 additional positions will be required in fiscal year 2013 to continue implementing Dodd-Frank.
Besides examiners, the agency will hire those with experience in derivatives, credit default swaps, collateralized debt obligations and securitized products. Compliance officers will also be hired.
CFTC
The agency requested $308 million for fiscal year 2012, up from its current budget level of $169 million, an 82% increase. It wants to grow headcount to 983 in 2012 from its current level of 667.
Of the 316 new staff, 238 would focus on implementing the financial regulatory bill. The hires will be focused on both oversight and enforcement. The agency will need examiners, economists, audit staff and analysts.
IRS
The agency requested $13.3 billion for fiscal year 2012, a $1.1 billion, or 9.4%, increase from current levels. It wants to add 5,112 new full-time employees, an increase of 5.4% to 100,537 employees.
The budget justification calls for more staff to handle new information reporting requirements, increase compliance with regards to offshore tax evasion, expand enforcement efforts among corporate and high-wealth taxpayers, and improve the tax preparing service. For example:
-- 377 for international service and enforcement.
-- 519 for tax preparation assistance services.
-- 413 for collection and tax debt coverage.
-- 497 for tax law and compliance issues.
-- 834 for the tax credits unit.
The agency will hire those with backgrounds in accounting and finance, compliance and knowledge of tax preparation and tax law. If you're assigned to the criminal investigation division, you'll also need to know how to use a gun.
Write to Julie Steinberg