WASHINGTON – Wall Street’s chief regulator will empower its enforcement personnel to initiate investigations, an early sign that it plans to become more assertive under Biden’s administration.
The move by the Securities and Exchange Commission allows more enforcing regulators to authorize investigations, allowing about 36 senior officers of the agency to sue companies and individuals for filings or testimonials. The agency withdrew that authority from regulators during the Trump administration and allowed only two officials to approve new probes, as it would result in more consistent decisions about which tips and complaints warrant investigations.
“By returning this authority to the division’s experienced senior officials, who have a proven track record of conducting it prudently, it helps ensure that investigators can work effectively to protect investors,” said the acting chairman. from the SEC, Allison Herren Lee Tuesday.
The number of new investigations dropped each year during the Trump administration, from 1,063 in 2016 to 827 in 2019, according to the most recent SEC figures. The number of completed enforcement actions has decreased from 548 in 2016 to 405 in 2020, although it reached 526 in 2019.
SEC personnel can investigate suspected wrongdoing without obtaining approval for a formal investigation. But those informal inquiries should only take 60 days to close or turn into an inquiry.