U.S. Securities and Exchange Commission enforcement actions against public companies and their subsidiaries remained at near-record levels through the first half of the 2019 fiscal year, which ended March 31. According to a report released today by the NYU Pollack Center for Law & Business and Cornerstone Research, enforcement actions reached these levels despite the federal government shutdown that led to a one-month period during which the SEC suspended non-emergency enforcement operations. Enforcement activity was largely fueled by the SEC’s Share Class Selection Disclosure Initiative (Share Class Initiative), in which investment advisors self-reported inadequate disclosures concerning the sale of mutual fund shares.
