SEC Enforcement In Financial Reporting And Disclosure: 2019 Year-End Update

INTRODUCTION

The chairmanship of Jay Clayton continues to focus the SEC's enforcement program on main street investors and misconduct by individuals. And with the hiring freeze lifted, the suspension of appropriations over, an emphasis on faster investigations in response to Kokesh, and the resolution of administrative proceedings upended by the Lucia decision, the Commission is now firmly focused on its own agenda.

The continuing guideposts of main street investors and individual misconduct does not mean a focus merely on offering frauds but increasingly explains broader programmatic interests and sweeps. In the recent Enforcement Annual Report, the codirectors also included a lengthy section noting their interest in issuer disclosure and accounting matters. This discussion is worthy of note and signals intention to apply enforcement resources to issuer disclosure, financial fraud, and accounting matters. The codirectors noted a number of the matters we discuss