SEC Filed Record Number of Enforcement Cases 2016 (7 of 7)



On November 17th, Todd Cipperman spoke on the topic of "The Evolving Regulatory Landscape - Practical Insights for Compliance Officers" at a webinar co hosted by MyComplianceOffice and Cipperman Compliance Services LLC. This is the final post of a seven part series which will address some of the topics covered by Todd during the webinar. You can watch videos of that webinar here.

The SEC reported that it filed a record number of enforcement actions for its fiscal year ending September 2016, including the most ever cases against investment advisers and investment companies.  The SEC brought 868 enforcement cases, exceeding the 807 it filed last year, including 160 against advisers and investment companies, which cases included 8 significant cases against private equity firms.  The SEC also cited its related cases against securities markets gatekeepers (e.g. attorneys, accountants, administrators), while noting the success of the whistleblower program, which awarded over $57 Million to 13 whistleblowers.  The SEC obtained over $4 Billion in disgorgement and penalties. SEC Chair Mary Jo White boasted, “By every measure the enforcement program continues to be a resounding success holding executives, companies and market participants accountable for their illegal actions.”  She also explained that the SEC is “expanding the playbook bringing novel and significant actions to better protect investors and our markets.”

OUR TAKE: The SEC has become a litigation and enforcement machine rather than a traditional regulator.  Focusing on the number of actions filed and penalties collected, the SEC will continue to use “novel” interpretations of the securities laws to ensure that it files ever more cases.


Author of post: Todd Cipperman, Cipperman Compliance Services LLC

This is the final post in our seven-part series following a webinar with Todd Cipperman on "The Evolving Regulatory Landscape - Practical Insights for Compliance Officers" .

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