On November 2nd, 2018, the Securities and Exchange Commission’s (SEC) Enforcement Division released an annual report summarizing its ongoing initiatives to protect investors and market integrity. The report focuses on several SEC actions that took place in Fiscal Year (FY) 2018.
As explained in the FY 2017 report, The Enforcement Division uses five core principles to drive its efforts: (1) focus on the Main Street investor; (2) emphasis on individual accountability (3) parallel with technological change (4) constant improvement of enforcement goals; and (5) regular assessments of the allocation of resources.
With these five core principles in mind for FY 2018, the Division executed a total of 821 enforcement actions and returned approximately $800 million to harmed investors.
Of the enforcement actions, 490 were “stand alone” actions executed in federal court, 210 were “follow-on” proceedings seeking bars, and 121 were to unregister public companies found to be “delinquent.”
The results collected for FY 2018 are in correlation with various retail investor specific initiatives, like the Share Class Selection Disclosure Initiative, a self-reporting program designed to return money to harmed investors.
WHAT DOES THIS MEAN FOR ME?
The Enforcement Division’s annual report presents a categorized list of noteworthy enforcement actions, in qualitative and quantitative terms, and a wide range of meaningful remedies.
Fairview® will continue to assist clients with maintaining robust compliance programs, while addressing the results of the Enforcement Division. If you have any questions or concerns about the conclusions of the annual report, please reach out to Fairview® directly.