In fiscal 2023, the U.S. Securities and Exchange Commission (SEC) filed a total of 784 enforcement actions, marking a 3% increase compared to the 760 filed in fiscal year 2022, according to recent reports. Despite this rise in filed actions, there was a decrease in the level of financial remedies from a record $6.4 billion in 2022 to $4.9 billion in 2023.
Despite the decline, the amount remains notable, as it is the second-highest in SEC history. Gurbir S. Grewal, who heads the Division of Enforcement, emphasized last year that the SEC did not have expectations to consistently break records in terms of financial remedies.
While the overall figures provide a useful snapshot, further insights can be gained by probing into the significant contributions from whistleblowers to these enforcement actions. Although the comprehensive data regarding the whistleblowers’ input isn’t readily available, previous trends suggest that their role could be substantial.
The SEC’s increasingly proactive enforcement posture, underscored by this new report, will undoubtedly draw the attention of legal professionals across the worldwide corporate landscape. As such, companies and law firms alike should anticipate the continuation of a stringent regulatory environment in the near future, preparing their compliance and enforcement strategies accordingly.