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The Securities and Exchange Commission (SEC) announced in its press release that in fiscal year 2023, it filed a total of 784 enforcement actions, marking a 3% increase from the previous fiscal year. These actions included 501 standalone enforcement actions, representing an 8% increase. The SEC also filed 162 administrative proceedings seeking to bar or suspend individuals from certain securities market functions and 121 actions against issuers allegedly delinquent in making required filings.
The enforcement actions covered a broad spectrum, including billion-dollar frauds, emerging threats in crypto asset securities and cybersecurity, and other violations by various market participants. Notable efforts were made to address conduct undermining oversight, protect whistleblowers, and enforce investor protection requirements for industry participants.
In fiscal year 2023, the SEC obtained orders for $4.949 billion in financial remedies, the second-highest in history, with $3.369 billion in disgorgement and prejudgment interest, as well as $1.580 billion in civil penalties. The SEC also distributed $930 million to harmed investors and had a record-breaking year for its Whistleblower Program, issuing awards totaling nearly $600 million.
The enforcement efforts targeted various areas, including fraud, unregistered offerings in the crypto space, market abuse, cybersecurity, ESG-related cases, public finance abuse, and Foreign Corrupt Practices Act (FCPA) violations. The SEC highlighted its commitment to individual accountability, with approximately two-thirds of cases involving charges against individuals, and it obtained orders barring 133 individuals from serving as officers and directors.
Director of the Division of Enforcement, Gurbir S. Grewal said, “Investor protection and enhancing public trust in our markets requires that we work with a sense of urgency, using all the tools in our toolkit. As today’s results make clear, that’s precisely what the Enforcement Division did in fiscal year 2023.”
For more information regarding SEC enforcement statistics, please refer to the SEC Addendum to Division of Enforcement Press Release - Fiscal Year 2023.
Coast to Coast Compliance can help give your firm and staff the confidence and preparedness to succeed in an SEC examination by conducting a mock SEC examination which includes the requesting and reviewing of key compliance and business documents, as well as the interviewing of various firm personnel. Coast to Coast Compliance can also provide a final exam interview, or written report if requested, covering the scope of the mock SEC examination, relevant findings, and any resulting recommendations.
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