New SEC Enforcement Director Calls Out Securities Markets Gatekeepers
The new SEC Enforcement Director, Gurbir Grewal, recently warned that the Enforcement Division will bring cases against securities markets gatekeepers such as lawyers and auditors. Calling gatekeepers the “first lines of defense against misconduct,” Mr. Grewal admonished firms that encourage clients to “play in the grey areas or walk right to the line.” Consequently, securities markets gatekeepers will “remain a significant focus for the Enforcement Division.” Mr. Grewal also announced that the SEC require more admissions of misconduct and warned firms to improve their recordkeeping.
This is clearly a return to the Mary Jo White Enforcement Division. For some history, you can read Chapter 3 of my 2018 book – The Compliance Advantage – titled “Securities markets service providers are charged with a market gatekeeping role,” where I describe multiple enforcement cases against lawyers, auditors, administrators, custodians and consultants.
Read speech here.