SEC Provides 2009 Enforcement Data
The SEC has publicized summary data of its 2009 enforcement actions in its recently released “Select SEC and Market Data, Fiscal 2009.” The data indicate that the SEC initiated 664 civil actions and administrative proceedings. The top five categories, comprising 84% of all actions, are the following: issuer reporting/disclosure (22%); securities offerings (21%); broker-dealer (16%); delinquent filings (14%); and investment advisors (11%). Notably, investment company cases made up only 1% of cases, and insider trading, which is often in the news, made up only 6% of cases. The data also includes the most common complaints; the top 3 are account closings, short selling, and theft of funds/securities.
OUR TAKE: When considering regulatory risk, it is always useful to consider the empirical data that indicates where the SEC has initiated enforcement actions. It should also help with allocation of compliance resources.