On May 26th, the Eleventh Circuit held that declaratory relief and disgorgement sought by the SEC are subject to the 5-year statute of limitations under 28 U.S.C. § 2462, but injunctive relief is not.  The court’s holding that § 2462 applies to disgorgement creates two circuit splits:  one with the D.C. Circuit, which has held that the 5-year statute of limitations codified in § 2462 does not apply to claims for disgorgement; and one with…

On February 18, 2016, Financial Industry Regulatory Authority (FINRA) announced that it had issued a targeted exam letter, or sweep, to firms seeking information about how firms establish, communicate and implement cultural values.  FINRA’s stated goal “is to better understand industry practices and determine whether firms are taking reasonable steps to properly establish and implement their own cultural values within the firm.”  FINRA previously identified firm culture as one of its examination priorities for…

As we previously reported, in 2012 and 2013 the Securities and Exchange Commission (SEC) changed its longstanding policy of permitting defendants to settle enforcement actions without admitting or denying liability. Initially, the policy was changed only with regard to settlements involving parallel criminal actions. Subsequently, the policy was further revised to require admissions in certain other cases, namely where: there was misconduct that harmed large numbers of investors, or placed investors or the market…

Late last week, the Securities and Exchange Commission (SEC) announced its enforcement results for fiscal year 2015, reporting a record number of enforcement actions and the highest amount of fines collected by the SEC to date. Through September 30, the SEC filed 807 enforcement actions − 507 federal securities law violations and 300 delinquent issuers or administrative proceedings seeking bars against individuals based on criminal convictions or civil injunctions. Together with SEC penalties and…

On September 24, 2015, the Securities and Exchange Commission (SEC) issued a press release announcing proposed amendments to its Rules of Practice governing administrative proceedings. The announcement comes at a critical time, when the SEC’s use of administrative proceedings has come under increasing fire. The proposed rules attempt to address aspects of the administrative process that are most often criticized: the lack of discovery and the compressed hearing schedule. The proposed rules also seek to…