SEC Enforcement Statistics Reach New Records
The SEC announced that it filed 735 enforcement actions during the fiscal year ending September 2011, which the SEC hailed as a high water mark. Robert Khuzami, the SEC Director of Enforcement, lauded his Divisionâ€™s â€œrecord-breaking performanceâ€ that included more than $2.8 Billion in penalties and disgorgement. The SEC filed 146 enforcement cases against advisers and funds, which is a 30% increase over last year, and filed 112 actions against broker-dealers, which is a 60% increase.
OUR TAKE: We do not think that fiscal 2011 is an aberration. The SEC has changed its focus and commitment on enforcement cases for the long term. We expect enforcement actions and penalties to increase year on year.