Dechert Publishes Alert Covering Enforcement Developments at the SEC

Dechert published a client alert highlighting recent developments under Chairman Paul Atkins at the Securities and Exchange Commission (SEC). Under Chair Atkins’ leadership, the Enforcement Division is likely to turn its focus to the “historical core mission” of the SEC, including investor protection (particularly vulnerable populations like seniors), while also focusing on classic fraud, market manipulation, and cases involving a breach of fiduciary duty. Additionally, according to the alert, the SEC Enforcement staff “expressed a renewed commitment to cooperation credit and indicated that they may be willing to exercise discretion in appropriate cases to decline to bring an enforcement action where there was self-reporting, cooperation and remediation.” With regard to artificial intelligence, the Enforcement staff are likely to focus on cases where fraudsters use technology to aid in their deception, as well as misrepresentations about the use of artificial intelligence in the investment process/strategy.

The Division itself has been reorganized with deputy directors based in regional offices located in the Northeast, West, and Southeast, as well as one deputy director that is in charge of the five specialized enforcement units (the Asset Management Unit, the Complex Financial Instruments Unit, the Cyber and Emerging Technologies Unit, the Market Abuse Unit, and the Public Finance Abuse Unit).

Click here to read the Dechert client alert.