A group called the Financial Services Roundtable has sponsored this report entitled "The Responsibility of the Securities and Exchange Commission For Efficiency, Competition and Capital Formation: Reforms for the First 1000 Days" (I may have missed it but I don't think they ever explain which "first 1000 days" they have in mind).  In any event, the report offers a series of SEC-enforcement related reforms, many of which are quite insightful.  I suggest checking them all out, but some of the highlights are:

• If a matter becomes a formal or informal investigation, the SEC staff should notify the parties whether they are targets or simply sources of information. If in the course of an investigation a party that was originally identified as a target is no longer considered a target, the party should be promptly notified.

• In connection with every Wells submission, the party making the submission should be advised of the specific facts that will be presented to the Commission by ENF.

• Parties should not be asked to waive attorney-client privilege unless they assert advice of counsel as a defense—and even then sparingly, perhaps in cases where fraud may be involved.
  
• The Commission should appoint an ombudsman with authority to investigate complaints by parties about violations by the staff of the procedures established by the Commission, or the Commission’s Inspector General should be given the authority to investigate public complaints about staff violations of the Commission’s rules for enforcement actions.