SEC Investigations Likely to Increase

Yesterday, BDA member firm Nixon Peabody released a government inspections alert looking into the possible impact at the SEC of full Democratic control of Washington.  The alert follows the February 9th announcement from acting Chair Allison Lee that the agency would allow more enforcement supervisors to authorize investigations, a power that had been scaled back during the Trump administration.

The alert can be viewed here 

Key points include:

  • Now 36 senior officials will have the power to launch investigations—giving them the authority to subpoena companies and individuals for records and testimony.
  • Expanding the authority to launch formal investigations will speed up the process of initiating matters and likely lead to an increase in active investigations.
  • In the near term, industry participants can expect to see more SEC subpoenas as a result of the additional formal investigations and it is imperative that they seek the guidance of experienced SEC counsel
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