WASHINGTON – The main Wall Street regulator will give more power to its enforcement staff to launch investigations, an early sign that it intends to become more assertive under the Biden administration.
The movement of the Securities and Exchange Commission allows several law enforcement supervisors to authorize investigations, allowing about 36 senior agency officials to summon companies and individuals for records or testimonies. The agency under the Trump administration withdrew that authority from overseers and allowed only two officials to approve new investigations, saying it would result in more consistent decisions on which advice and complaints justified the investigations.
“Returning this authority to the division’s experienced senior officers, who have proven experience in prudent execution, helps ensure that investigation staff can work effectively to protect investors,” SEC Chairman Allison said Tuesday. Herren Lee.
The number of new investigations has dropped each year during the Trump administration, from 1,063 in 2016 to 827 in 2019, according to the latest figures released by the SEC. The number of completed enforcement actions decreased from 548 in 2016 to 405 in 2020, although it reached 526 in 2019.
SEC staff can review suspected actions without obtaining the approval of a formal investigation. But these informal investigations should only take 60 days before they are closed or turned into an investigation.