Securities and Exchange Commission Enforcement Director Gurbir Grewal said Tuesday that enforcement “should not be a game of gotcha,” but a joint effort by SEC and companies under scrutiny to determine whether a violation has occurred.
“This should be a collaborative process,” Grewal said in reply to a question at Securities Enforcement Forum West. “It shouldn’t be that we’re going to hold all of our cards close to the vest and surprise you at the 11th hour and hold something for trial — this is a truth-seeking mission that we’re on.”
“The most effective resolutions that I’ve seen are ones where an attorney has come in well before a formal process and said, ‘I know you’re looking at this, but have you thought about these facts, or have you looked at something this way?’” Grewal said. Such dialogue sometimes prompts the SEC not to pursue an investigation, he said.
Source: SEC enforcement not ‘a game of gotcha,’ Grewal says | CFO Dive
