SEC to Dial Back Sweep Exams, Trim Enforcement Squad

November 06, 2017

Kyle DeYoung comments in Ignites about recent comments by SEC officials indicating that the agency is likely to bring fewer cases focused on minor infractions as head count in the enforcement division shrinks. 

An excerpt from "SEC to Dial Back Sweep Exams, Trim Enforcement Squad," Ignites, November 6, 2017:

The new direction could mean that examiners shift from focusing on industrywide concerns that send a message to ferreting out specific instances of “intentional misconduct,” says Kyle DeYoung, a partner at Cadwalader, Wickersham & Taft.

In late September, the SEC launched a Retail Strategy Task Force aimed at spotting “large-scale misconduct affecting retail investors." That initiative, along with the enforcement division’s search for intentional misconduct, may foretell a rise in enforcement actions that hold individuals accountable for wrongdoing, says Cadwalader’s DeYoung.



Making a Mark on Our Communities: Pro Bono Report 2020

Cadwalader's research and intelligence platform provides analysis on changes in U.S. financial regulation. Subscribers receive a daily newsletter interpreting new laws, rules and enforcement actions that impact financial institutions.