What Every Company, Director and Officer Should Know About Current SEC Enforcement Policies and Trends
Issuers and their general counsel, directors and officers should carefully monitor enforcement trends of the Securities Exchange Commission ("SEC" or "the Commission") to ensure proper compliance and avoid entanglement with investigations and potential liability. EC enforcement can be expected to continue its emphasis on insider trading, the FCPA, financial fraud and to expand into areas related to subprime. A knowledge and understanding of these trends is critical to avoiding entanglement in investigations or enforcement actions and ultimately liability.
In this alert, we summarize these developments. To avoid or at least minimize liability, issuers and their directors, officers and counsel should carefully review key compliance programs, such as those for insider trading, the FCPA and fraud detection. Continued employee education in these areas is critical, as is an understanding of these trends is also critical to any person facing an SEC investigation, which presents a series of difficult choices that can have an impact far beyond the immediate investigation.