As the new year begins SEC Enforcement appears to be at a cross-roads. Commissioners have, or will, depart; there are, or will be, new appointees. The reconstituted agency will have to determine if its current numbers-monetary-sanctions-publicity driven approach is actually effective at bringing a new ethics to the market place as its statutory mandate requires. The SEC will also have to decide if self-reporting and cooperation are integral to the mission of its enforcement program. If so, the related question is if those goals are consistent with the approach being utilized.
The actual path of SEC enforcement may be difficult to chart, other expecting the agency to continue with its current staples of offering frauds, Ponzi schemes, insider trading and cases tied to the findings of its inspection program. Yet there are key issues which, if examined as they unfold, may point the way.
‘Enforcement 40’ for 2020
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