For decades, the Securities and Exchange Commission’s Enforcement Division allocated few of its limited resources to the world of funds and advisers. The ’40 Act was left to the regulatory lawyers while, apart from the combined state-federal campaign against market timing and late trading a few years ago, the enforcement lawyers directed their investigations and litigation elsewhere.
The investor protection provisions of Title IX of the Dodd-Frank Wall Street Reform and Consumer Protection Act, H.R. 4173, 111th Cong. (2010) promise to make major changes in the world of securities enforcement and regulation. Thanks to Dodd-Frank, we will shortly see whistleblowers enticed by potentially lucrative bounties for reporting violations to a much larger and more powerful SEC.
This article examines the unit’s new enforcement approach in dealing with complex products, its hotlycontested big first case, and its likely areas of future prosecutorial interest as it rolls out more investigations and cases in this challenging part of the SEC’s enforcement program.
Securities Regulation & Law Report (BNA), Vol. 42, No. 4 - This article analyzes the new cooperation policy and other important changes in the Manual that will most impact SEC defense counsel and their clients.