SEC Enforcement 2018 Report

On Nov. 2, SEC issued enforcement report on FY 2018 activities.

  • Follows SEC Nov 2017 enforcement report on priorities and results.

2018 Core Principles

  • Principles are to protect Main Street investor, individual accountability for action.
  • Bar bad actors from securities markets, and send strong message of deterrence.
  • Keeping pace with technological change, remedies to further enforcement goals.
  • Constant assessment of allocation of SEC resources, to areas of highest priority.

Level of Sanctions

  • Obtained judgments and orders of $3.945bn in total disgorgement and penalties.
  • Of the $3.945bn in total payments, with $1.439bn fines, $2,506bn disgorgement.
  • Brought 821 enforcement actions, 490 standalone, returned $794mn to investors.
  • This was higher than $3.789bn for 2017, ($832mn fines, $2,957bn disgorgement).

Priority Areas

  • Focus on key priorities: of protecting retail investors and combating cyber threats.
  • Cited Sep. 2018 $1mn fine of Voya for cyber intrusion of client data, see #47479.
  • Retail investor-specific initiatives including cases having a broader market impact.
  • Cited groundbreaking approach to misconduct initial coin offerings, digital assets.
  • Used various tools, some traditional such as SEC trade suspension authority, and
    more novel ones such as statements, to educate investors, firms and gatekeepers.