The Securities and Exchange Commission’s (SEC) Division of Enforcement recently announced significant updates to its Enforcement Manual.
This is the first update since 2017, and the manual now will undergo annual reviews.
“This is an important and long-overdue step that builds on the Division of Enforcement’s commitment to transparency, fairness, and process while ensuring it remains able to fulfill its mission,” SEC Chairman Paul Atkins said.
He further commended Judge Margaret Ryan, director of the Division of Enforcement, “and the staff’s work on revisions to the manual and their commitment to a continued review of the manual going forward to ensure its procedures remain current, effective, and relevant.”
Updates include changes intended to encourage more consistent internal collaboration, changes to the formal order process, and an updated framework for referrals to criminal authorities.
The SEC will provide parties subject to potential SEC action with greater visibility into the collateral effects of a settlement. The change is meant to improve the efficiency of investigation resolution, conserve SEC resources and protect investors.
The SEC will provide recipients of a Wells notice four weeks to make Wells submissions, and Wells meetings will be scheduled within four weeks of receipt of a submission.