On November 14, 2023, the Securities and Exchange Commission (the “SEC” or the “Commission”) announced its enforcement results for fiscal year (“FY”) 2023 at a press briefing, setting significant benchmarks in the enforcement of securities laws and regulations.
A key point to note from the SEC’s FY 2023 enforcement highlights is the aggressive approach the Commission undertook that resulted in record highs across multiple enforcement metrics. Actions taken by the SEC in the FY 2023 reached a total of 784. This figure underscores a relentless focus on enforcement and demonstrates the commitment of the Commission in ensuring fair transaction integrity in securities markets.
Another significant metric was the financial penalties and disgorgements ordered by the SEC. The Commission obtained orders totalling nearly $5 billion in financial remedies in FY 2023, a figure that highlights the SEC’s commitment not only to enforce securities laws but also to seek significant sanctions to deter future securities law violations.
Of notable mention, too, is the amount distributed to harmed investors as a result of SEC’s actions. Details of these distributions were not immediately available as per the summary provided by Vedder Price.
As we look ahead to FY 2024, it is clear that the SEC’s core mission of protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation continues to shape its proactive approach towards enforcement. Attorneys representing clients involved with the SEC should take heed of the Commission’s aggressive approach and expect a sustained commitment to rigorous enforcement in the coming fiscal year.