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ARTICLE · 06 MARCH 2026

The SEC Enforcement Division Announces Significant Changes To Its Processes

Foley & Lardner LLP
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In February 2026, the SEC's Division of Enforcement announced significant changes to its approach to investigating and determining whether to prosecute individuals and entities suspected by the Division of having violated the federal securities laws.

United StatesGovernment, Public Sector
Brooke Clarkson
Brooke Clarkson
Samuel Winer
Samuel Winer
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Introduction

In February 2026, the Securities and Exchange Commission's (SEC) Division of Enforcement (the Division) announced significant changes to its approach to investigating and determining whether to prosecute individuals and entities suspected by the Division of having violated the federal securities laws. The Division included these changes in its first update of the SEC's Enforcement Manual (the Manual) since 2017 and promised to review and update the Manual annually going forward.

These changes reflect a significant policy departure from the approach taken in prior administrations and signal a more selective method for determining how to deploy the agency's limited resources. They also indicate a heightened commitment to considering the defense perspective before recommending that the SEC take enforcement action.

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