The U.S. Securities and Exchange Commission is investigating whether investment advisers and other firms have strong enough policies in place to ensure that nonpublic information is not misused to gain an illegal advantage in trading, a senior official told Reuters. In a recent interview, Gurbir Grewal, the SEC's Enforcement Arbitrator, said the SEC is seeking to crack down on ineffective policies and procedures as part of a broader insider trading investigation. "What's so frustrating about insider trading is that sometimes the power of imprisonment and punishment doesn't stop it," Grewal said.