2023 was another active year for U.S. Securities and Exchange Commission (SEC) enforcement, encompassing a wide range of violations against individuals and firms of all sizes.
Understanding 2023 enforcement actions along with the agency’s 2024 enforcement priorities will help firms better assess and anticipate regulatory expectations—and set the stage for better compliance.
U.S. Securities and Exchange Commission Chair Gary Gensler said in a speech to the Practicing Law Institute that during the fiscal year that just ended on September 30, the agency filed over 700 actions and obtained judgments and orders totaling $6.4 billion, including $4 billion in civil penalties.
The actions, outlined in a recent press release, covered a wide range of misconduct including charges around insider trading, disclosure failures and omissions, market manipulation and fraud, misleading investors, executive accountability, failure to maintain books and records, failure to register crypto as a security and insufficient policies and procedures.
It should come as no surprise to compliance teams that the management of Books and Records is in the regulatory spotlight. The U.S. Securities and Exchange Commission (SEC) recently charged several large Wall Street firms with widespread record keeping failures. The firms will be required to pay combined penalties of more than $1.1 billion, and also must make substantive improvements to their compliance policies and procedures around books and records.
