Published on Jan 24th, 2025 |

SEC’s Anticipated Regulatory Outlook | Chuck Martin Insights

Vigilant Insights

Introduction

The SEC started off their Fiscal Year with a record number of enforcement actions.

As the industry anticipates a change in the regulatory environment, it is unknown whether this quarter was one last push from the previous administration.

Our Chief Operating Officer, Chuck Martin, provided his insights on FundFire in a recent article focusing on the enforcement action results throughout the last two (2) Presidencies and what he is projecting for the upcoming regulatory outlook.

Chuck Martin Insights

Chuck Martin Insights

Chuck provided an analysis to FundFire, highlighting that between 2017 and 2020, during Trump’s first Presidency, there were a total of 3,116 SEC enforcement actions and $16.7 billion in disgorgement and penalties.

Surprisingly, there were 2,824 enforcement actions brought between 2021 to 2024 under former President Joe Biden, but the disgorgement and penalties were higher, at $23.4 billion. However, it is worth noting that the number of new rules and adopted amendments were significant under the Biden administration.

Regarding the announcement of the record number of enforcements in Q1 2025 for the SEC’s Fiscal Year, Chuck stated that this serves as a final “bow” in Former SEC Chair, Gary Gensler’s tenure.

While members of the industry anticipate major changes in enforcement actions and the regulatory environment, Chuck warns that while there may be a shift in the areas of focus under Paul Atkins, the amount of enforcement actions may not experience the major drop that has been predicted.

Vigilant's Conclusion

Vigilant’s Conclusion

Vigilant suggests that Firms continue to focus on building a proactive culture of compliance for their business.

While it may be tempting to remain in a holding pattern while we wait for the next actions/updates of the SEC, failure to support one’s compliance program could result in costly fines and penalties if the Division of Enforcement’s numbers continue.

Vigilant provides Compliance Services, such as Mock SEC Exams, to test your Firm’s readiness. Contact us today to discover how we can help your business minimize its risk of regulatory exposure.

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