Changes Expected For SEC Enforcement Under President Trump

Change is coming to the SEC Division of Enforcement ("Enforcement Division"). With three open Commission seats to fill and looming legislative proposals by the Republican-majority Congress, the Enforcement Division is likely to become more centralized and focus on a different set of priorities under the Trump Administration.

In a memorandum, Cadwalader attorneys preview forthcoming changes at the Enforcement Division. For example, the power of Enforcement Division attorneys in the field to issue subpoenas and open new investigations was scaled back recently by Acting Chair Michael Piwowar. The new procedure will require a personal sign-off by the Director of Enforcement in Washington, D.C. This move indicates that after years of allowing wide latitude to Enforcement Division attorneys to open and pursue cases, the SEC is reverting to a more centralized decision-making model. Such a shift will make it easier for the SEC and the next Director of Enforcement to focus