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.

SEC Names Katherine Reilly as Acting Inspector General in Key Oversight Role

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.