The SEC has a three part mission, and protecting a company’s shareholders is part of that, but not at the expense of the larger market, particularly when there are other companies – and shareholders – who have committed to and invested in compliance. So in setting penalties, we can’t look only at the impact the penalty will have on a particular group of investors who own shares in the specific violating entity. As the Commission noted 15 years ago, we must examine the impact more broadly. We must think about the impact on all investors, and that will help ensure fair and efficient markets. Every enforcement decision we make effects multiple constituencies in myriad ways. Therefore, we must consider those impacts and seek the right balance. We must correct this course.
‘Enforcement 40’ for 2020
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