SEC Filed Record Number of Enforcement Cases in 2014
The SEC announced that it filed a record number of enforcement actions in the fiscal year that ended September 30. The SEC has reported that it filed 755 enforcement actions as compared to 686 and 734 in the prior two years. The SEC obtained orders totaling $4.16 Billion in disgorgement and penalties as compared to $3.4 Billion and $3.1 Billion for 2013 and 2012. The SEC highlighted cases against investment advisers and investment companies including first-ever cases alleging violations of the “pay-to-play” rule and against a private equity firm for mis-allocation of expenses. The SEC described a “very strong year for enforcement.” SEC Chair Mary Jo White said that the SEC “brought and will continue to bring creative and important enforcement actions across a broad range of the securities markets.” Andrew J. Ceresney, Director of the SEC’s Division of Enforcement said, “I am proud of our excellent record of success and look forward to another year filled with high-impact enforcement actions.”
OUR TAKE: Increasing the number and types of enforcement actions, including those against funds and advisers, continues to be a focus of Mary Jo White’s SEC. The only rational response is to enhance your compliance program and stay away from any questionable activity.