FY16 SEC Enforcement Rules Announced
The Securities and Exchange Commission (“SEC”) announced last week the filing of 868 enforcement actions during fiscal year 2016. Actions included companies and their executives engaging in financial reporting misconduct, as well as transgressions by registrants and gatekeepers. The SEC contributes the enhanced use of data and analytics to help detect misconduct and accelerate the investigation process.
Fiscal year 2016 showed an increase in actions concerning investment advisers and Foreign Corrupt Practices Act violations. In addition, issuer reporting and disclosure matters continued to be a priority last year. The SEC also held various gatekeepers accountable for failing to comply with professional standards, charged 78 parties for insider trading, and awarded more than $57 million to whistleblowers under its whistleblower program.