The Securities and Exchange Commission’s (SEC) Enforcement Division outlined its priorities for the coming year and highlighted its enforcement actions in FY 2017 in a new report.
The authors of the report, co-directors Stephanie Avakian and Steven Peikin, wrote that their overall approach is “vigorous enforcement of the federal securities laws is critical to combat wrongdoing, compensate harmed investors, and maintain confidence in the integrity and fairness of our markets.”
For the upcoming year, they outlined five core principles to guide their enforcement decision-making. The principles include focusing on the Main Street investor, fostering individual accountability, keeping up with technology, imposing sanctions that further enforcement goals, and assessing the allocation of resources.
“As enforcement directors, our goal is to continue to protect investors, deter misconduct, punish wrongdoers and keep our markets the safest and strongest in the world,” Avakian said.
In 2017, the SEC brought 754 enforcement actions and returned a record $1.07 billion to harmed investors. Of the commission’s 446 standalone cases, most concerned investment advisory issues, securities offerings, and issuer reporting/accounting and auditing. The SEC took enforcement action related to market manipulation, insider trading, and broker-dealers.
“The Enforcement Report clearly shows the broad range of the significant enforcement actions, penalties and money returned to investors,” Peikin said. “We will continue to bring enforcement actions involving misconduct that directly harms investors and our markets.”
In addition, the SEC obtained judgments and orders totaling more than $3.789 billion in disgorgement and penalties.
“I applaud the excellent work of the men and women of our Enforcement Division. Through their tireless efforts to uncover wrongdoing and hold bad actors accountable, they defend our Main Street investors and support the integrity of our capital markets,” SEC Chairman Jay Clayton said.