Tag: Formal Orders

Who Should Launch SEC’s “Power to Destroy”??

The vast majority of these investigations are not urgent, as evidenced by their current “five-year best” average duration of “only” 21.6 months. And many SEC investigations are completed without the need to issue subpoenas at all. For those exceptionally rare cases requiring urgent subpoena power, today’s technology and streamlined internal procedures can easily enable commissioners to be adequately briefed, and…

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SEC Expands Enforcement Staff’s Power to Start New Investigations – WSJ

Wall Street’s main regulator will give more power to its enforcement staff to launch investigations, an early sign that it plans to become more assertive under the Biden administration. The move by the Securities and Exchange Commission allows more enforcement supervisors to authorize investigations, permitting about 36 senior officials at the agency to subpoena companies and individuals for records or…

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Statement of Acting Chair Allison Herren Lee on Empowering Enforcement to Better Protect Investors

In consultation with Division of Enforcement Acting Director Melissa Hodgman, today I restored a vital tool to our enforcement program to better protect investors by authorizing senior officers in the division to approve the issuance of a Formal Order of Investigation. This will empower senior officers to exercise the delegated authority of the Commission to authorize staff to subpoena documents…

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Acting SEC Chair’s Steps to Centralize the Process of Issuing Formal Orders—Are Commentators Drawing the Right Lessons?

If these reports are accurate, however, what lessons may be drawn from the change? Initial reactions have largely focused on whether centralizing formal order authority with the Acting Division Director reflects an effort to slow the pace of SEC investigations. But this assertion seems incomplete at best, and may largely miss what is really going on. It’s hard to draw definitive…

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SEC official says staff may have too much power over subpoenas — Reuters

A top U.S. securities regulator on Friday questioned the methods used by his agency to subpoena the targets of investigations, saying he feared they lack oversight and delegate too much power to enforcement attorneys. Speaking before the Los Angeles County Bar Association, Securities and Exchange Commission Republican member Michael Piwowar said he believes it is time for the SEC to…

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