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