SEC’s Office of Investor Education and Advocacy Provides an Overview of How the Division of Enforcement Conducts Investigations

On October 22, SEC’s Office of Investor Education and Advocacy issued an Investor Bulletin to provide investors with a general overview of how the SEC’s Division of Enforcement conducts investigations. The Bulletin states that the Division of Enforcement may be more likely to initiate an investigation if the matter:

  • Requires immediate action to protect investors;
  • Relates to conduct that may threaten the fairness or liquidity of the securities markets;
  • Involves individuals with a history of misconduct;
  • Involves a subject matter the SEC or Enforcement has designated as a priority;
  • Fulfills a programmatic goal of the SEC and Enforcement; or
  • Concerns an industry practice that may be widespread and should be addressed. Bulletin.