Landmark Legislation Gives SEC New Enforcement Capability

The newly approved financial reform bill contains new measures expanding the SEC's enforcement authority and strengthening its oversight and regulatory authority over the nation's securities markets.

On July 15, the U.S. Senate passed the Dodd-Frank Wall Street Reform and Consumer Protection Act (Wall Street Reform Act, or the Act), which President Obama is expected to sign into law shortly. This landmark legislation contains an array of important new measures that significantly expand the enforcement authority of the U.S. Securities and Exchange Commission (SEC) and strengthen its oversight and regulatory authority over the securities markets.¹ These new measures will dramatically improve the SEC's "real-time enforcement" abilities, as it attempts to deliver on its promise to move more swiftly in enforcement actions to restore investors' faith in the markets.²