SEC’S Enforcement Director Announces Specialized Prosecuting Units, Including Asset Management
The SEC’s new Director of Enforcement, Robert Khuzami, has announced the creation of five Specialized Units including an Asset Management Unit dedicated to enforcement cases against investment advisers and funds. Mr. Khuzami explained in a recent speech that the Asset Management Unit will investigate issues around disclosure, valuation, performance, due diligence and diversification, affiliate transactions, misappropriation, and conflicts of interest. The other four Specialized Units include Market Abuse, Structured and New Products, Foreign Corrupt Practices, and Municipal Securities and Public Pensions. Mr. Khuzami also announced that the SEC has delegated to Mr. Khuzami and his team the power to issue subpoenas without full Commission approval. Mr. Khuzami also noted that greatly expanded enforcement activity since his appointment.
OUR TAKE: Through the creation of these specialized units with subpoena power, Mr. Khuzami is restructuring the Division of Enforcement into a prosecuting organization.