SEC’s Division of Enforcement Year-End Results Reflect Continuing Aggressive Approach to Enforcement and Remedies

20 November 2023
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Key Takeaways:
  • On November 14, 2023, the U.S. Securities and Exchange Commission’s (“SEC” or “Commission”) Division of Enforcement (“Division”) announced its enforcement results for fiscal year (“FY”) 2023. Disgorgement and penalties were the second highest in the SEC’s history at just under $5 billion, while the overall number of actions rose by 3% over FY 2022. The actions highlighted by the SEC in its press release continue to provide valuable insights into evolving trends and areas of continued enforcement.
  • The SEC brought 501 standalone enforcement actions in FY 2023, continuing the upward trend starting in FY 2020 with an 8% increase year-over-year. The number of follow-on administrative proceedings and actions against issuers who were delinquent in making required filings with the SEC hovered around the same level as last year. In addition, the SEC issued a new record-high amount in whistleblower awards, which totaled nearly $600 million, with a record-breaking $279 million award to one whistleblower.
  • The SEC continued to focus on key industries, issues, and initiatives in FY 2023. The press release highlighted the Commission’s “Industry Shaping” initiatives, including the new Marketing Rule, insider disclosures, and Regulation A compliance. Crypto was in the spotlight again, as well as a focus on off-channel communications. Moving into the new fiscal year, we expect to see the SEC’s aggressive approach to enforcement and remedies continue to grow.