SEC Unveils Structural Overhaul of Enforcement Division
News and Alerts
Introduction
It was recently reported that the SEC has reorganized the command structure for the Divisions of Enforcement and Exams.
Previously, the SEC had a single Deputy Director for the Enforcement Division, along with different Regional Offices with a Director supervising each office. Now, they have dropped from 10 Regional Offices and one (1) Deputy Director down to three (3) regions, new Deputy Directors based on the geographic regions, as well as a Deputy Director for Specialized Units.
We have seen a wave of changes and adjustments from the SEC, and with the SEC Chair, Paul Atkins, being confirmed on April 9th, 2025, we anticipate to gain more color on what the SEC plans to focus on going forward.
New Structure
With this new structure, there are specific Deputy Directors based in the West, Northeast, or Southeast regions. There is an additional Deputy Director overseeing the specialized units.
This is already in effect with an effective date of April 9th, 2025, and the SEC confirmed the changes as part of their efforts to improve the efficiency and oversight of the stated Divisions.
Acting SEC Chair, Mark Uyeda, called the previous command structure unsustainable.
Vigilant’s Conclusion
It has been an industry expectation (seen through releases and statements) that the SEC staff was going to be less than the previous four years. However, it is worth noting that the new leadership at the SEC also emphasizes their commitment to enforcement activity that ensures a fair marketplace.
Enforcement activity has generally remained consistent throughout different Presidential Administrations, and although their focus may change it is still vital that compliance departments do not pull back on their commitments to creating a proactive compliance culture.
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