Stradley Ronon Releases FY2025 SEC Asset Management Enforcement Analysis

A recent Stradley Ronon report highlights changes in FY2025 between former SEC Chair Gary Gensler and current SEC Chair Paul Atkins. The report notes that in FY2025 within the investment adviser and investment company (“IA/IC”) space, the Atkins led SEC filed 35 enforcement actions compared to Gensler’s enforcement division that filed a total of 48 stand-alone IA/IC actions during the three-and-a-half-month period that he was at the Commission. In a speech early in his tenure as Chair, Atkins noted that the SEC “will return to Congress’ original intent, which is to police violations of… established obligations, particularly as they relate to fraud and manipulation.” Under Atkins, the SEC has focused on breach of fiduciary duty to clients, falsifying SEC records or forms, and investor protection areas. The report also notes that staff at the Commission was “reduced by approximately 15% between the start of FY2025 and May 20 — decreasing from a peak of roughly 5,000 employees and 2,000 contractors to around 4,200 employees and 1,700 contractors.” Furthermore, in Atkin’s request for appropriations for FY2026, he requested an 18% cut in funds for the Enforcement Division. The report’s authors note, however, that “we do not expect this to translate into a significant reduction in its capabilities or willingness to devote resources to pursuing its mission of investor protection.” 

Click here to view Stradley Ronon’s FY2025 Enforcement Analysis.