The SEC Sheds Light on Enforcement Procedures. The Daily Journal
By Thomas Zaccaro and Morgan Miller
The Securities and Exchange Commission, the federal agency that regulates corporate transparency, now has provided some transparency of its own regarding its enforcement program. On October 6, 2008, the SEC’s Enforcement Division published its fi rst ever Enforcement Manual for conducting informal and formal investigations. The Manual, which is available online, provides invaluable insight into the SEC enforcement process for both new and experienced SEC practitioners. Former SEC Commissioner Paul Atkins commented on the need for an enforcement manual in a February 2008 speech, in which he suggested that such a manual would provide more transparency and predictability in SEC investigations. The publication of the Manual at this time may also be in response to recent criticism from Congress and the SEC’s Inspector General regarding alleged preferential treatment for certain individuals under SEC investigation.