Record-Breaking SEC Enforcement Actions in FY2014

New investigative approaches and innovative uses of data and analytical tools contributed to a very strong year for enforcement in the fiscal year (“FY”) that ended September 30, 2014:

  • Record 755 enforcement actions, covering a wide range of misconduct, vs 686 enforcement actions in FY2013 and 734 enforcement actions in FY2012
  • Obtained orders totaling $4.16 billion in disgorgement and penalties, vs $3.4 billion in FY2013 and $3.1 billion in FY2012
  • Included a number of first-ever cases, including actions involving the market access rule, the “pay-to-play” rule for investment advisers, an emergency action to halt a municipal bond offering, and an action for whistleblower retaliation

Uncovering Misconduct by Investment Advisers and Investment Companies

  • First-ever action under investment adviser “pay-to-play” rule
  • Filed first action arising from a focus on fees and expenses charged by private equity firms
  • Charged three investment advisory firms with failures to maintain adequate controls on the custody of customer accounts
  • Pursued other types of wrongdoing by asset managers, and leveraged proactive risk identification initiatives such as the Aberrational Performance Inquiry, which uses proprietary analytics to identify hedge funds with suspicious returns

Other Areas of Enforcement Action

  • Combatting financial fraud and enhancing issuer disclosure
  • Ensuring exchanges, traders and other market participants operate fairly
  • Increasing activity in Whistleblower Program
  • Holding Gatekeepers Accountable
  • Rooting out insider trading
  • Upholding disclosure standards in municipal securities
  • Cracking down on misconduct involving complex financial instruments
  • Combatting foreign corrupt practices and obtaining highest-ever penalties against individuals
  • Demanding admissions in important cases enhancing public accountability
  • Successful litigation

Press Release from the SEC

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