The Securities and Exchange Commission voted Tuesday to propose new rules and amend existing rules concerning the governance, transparency, oversight, and ownership of self-regulatory organizations.

At an open meeting today, the SEC said the proposals would require SROs to: adopt minimum governance standards, including a majority independent board and fully independent nominating, governance, audit, compensation, and regulatory oversight committees’ it also would require each SRO to take steps to separate its regulatory function from its business operations; and, publicly disclose, and update at least annually, specified information about their operation and structure, including governance, regulatory programs, financial condition, and ownership.

SROs would also be required to submit quarterly and annual reports to the SEC regarding the operation of their regulatory programs, including their examination, investigation, and enforcement activities. The ownership and voting levels of SRO members that are broker-dealers would be restricted to no more than 20% with respect to the SRO or any separate facility. It also would require SROs and their members to report any significant accumulations of SRO ownership interests and voting power. And, SROs would be required to comply with additional reporting and other requirements in the event they list or trade their own or an affiliate’s securities.

The SEC also voted to issue a concept release examining the efficacy of self-regulation. It will request public comment on a variety of issues, including, the inherent tensions in this model and its strengths and weaknesses. The concept release also will request public comment on the advisability of implementing enhancements to the current SRO system or, alternatively, pursuing an alternative regulatory model.