WASHINGTON – Wall Street’s top regulator will empower its enforcement team to launch investigations, an early sign that it plans to become more assertive under the Biden government.
The Securities and Exchange Commission measure allows more supervisory supervisors to authorize investigations, allowing some 36 senior agency employees to intimidate companies and individuals for records or depositions. The agency during the Trump administration removed that authority from supervisors and allowed only two employees to approve new investigations, saying it would result in more consistent decisions about which tips and complaints justified the investigations.
“Returning this authority to experienced senior officers in the division, who have a proven track record of prudent execution, helps to ensure that the investigative team can work effectively to protect investors,” said SEC acting president Allison Herren Lee on Tuesday. -market.
The number of new investigations dropped every year during the Trump administration, from 1,063 in 2016 to 827 in 2019, according to the latest data published by the SEC. The number of completed enforcement actions fell from 548 in 2016 to 405 in 2020, although it reached 526 in 2019.
SEC staff can investigate suspected offenses without obtaining approval for a formal investigation. But these informal investigations should only last 60 days before they are closed or converted into an investigation.