Adapting to the New Regulatory Landscape | Chuck Martin Insights
VIGILANT INSIGHTS
Introduction
The SEC recently announced a record number of enforcements for Q1 of FY 2025. The announcement occurred in midst of an on-going industry discussion about how the SEC is expected to operate under a new administration.
Ignites recently published an article discussing how CCOs can prepare for this potential “New Era” for the SEC.
Vigilant’s Chief Operating Officer, Chuck Martin, MBA, provided commentary and important reminders for CCOs who are anticipating a calmer regulatory climate.
Chuck Martin Insights
While it may be tempting to cut back on Compliance Support under the new administration, such decisions can hinder a compliance department’s ability to effectively perform its duties.
Chuck reminds us that while certain regulatory actions may have ramped up under Former SEC Chair, Gary Gensler, there were approximately 292 more enforcements during President Trump’s first term. He predicts that focus areas under the new SEC Chair will change, but it would be unwise to assume that enforcements will decrease. Compliance departments will continue to face challenges as they address the risks involving cybersecurity, vendors, and AI.
Vigilant’s Conclusion
Compliance departments should consistently evaluate their ability to monitor employees and foster a strong culture of compliance within their organization.
Reducing resources for compliance during uncertain times could be a risky move. Firms that scale back on compliance could face significant risks if they encounter SEC Examiners with the same mindset as in recent years.
Contact Vigilant to learn how your Firm can best prepare for the compliance challenges on the horizon.