Monday, December 30, 2013

2013 SEC Enforcement Summary

By Tim Dulaney, PhD, FRM and Tim Husson, PhD

A couple months ago, we provided an analysis of SEC activity as represented by litigation releases.  In that post, we commented on the breakdown of SEC litigation releases over time, aggregated by month and weekday.  Recently, the SEC has released their enforcement statistics (PDF) updated for the 2013 fiscal year.

All told, the SEC obtained monetary sanctions of more than $3.4 billion (including disgorgement and penalties) over the 2013 fiscal year.  This number represents a nearly 11% increase year over year for the SEC's enforcement division.  Highlights of FY 2013 include the SEC penalizing NASDAQ for bungling the Facebook IPO and several actions filed involving SAC Capital Advisors -- including Steven Cohen.

In addition, the SEC is highlighting the $14 million paid out to whistleblowers (including this large payout) who have aided the SEC in several investigations during FY 2013.  The SEC received more than 3,200 tips over the past 12 months according to the press release.

The SEC opened 908 investigations in 2013, suggesting that 2014 might be a very active year for enforcement.  You can track the SEC's actions on their website or through our own weekly regulatory review.

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