Friday, February 12. 2021

SEC Chair Empowers Enforcement to Improve Investor Protection

The SEC announced on February 9, 2021 that, after consulting with Division of Enforcement Acting Director Melissa Hodgman, SEC Acting Chair Allison Herren Lee has reinstated a critical tool to the enforcement program – the delegation of authority to the division’s senior officers.


This new authorization will: 

  • allow the division’s senior officers to approve the issuance of a Formal Order of Investigation
  • enhance investor protection
  • empower senior officers to authorize staff to subpoena documents and take sworn testimony
  • enable investigative staff to act more swiftly to detect and stop ongoing frauds, preserve assets, and protect vulnerable investors

Giving the authority back to the Division of Enforcement’s experienced senior officers facilitates the work of the investigative staff who continue to protect investors in a time when incidents of fraud are rapidly increasing.


Sources:

Statement of Acting Chair Allison Herren Lee on Empowering Enforcement to Better Protect Investors (sec.gov)


Posted by
The Novaworks Team
in SEC at 14:00