The American Commission for Securities and Exchanges announced its application results For the financial year 2024. The Division of the Application of SEC laws filed 583 application shares, a drop of 26% compared to the financial year 2023, in particular:
- 432 autonomous shares (representing a drop of 14% compared to 2023);
- 93 Administrative follow -up procedures (43%decline); And
- 59 Delinking file shares (decrease of 51%).
(All graphics are taken from Addendum to the results of the application of the dry in 2024.)
Decomposed by the primary classification, the SEC brought 135 shares of investment advisor or investment companies, 98 broker shares and 97 securities offering shares – the three main categories of procedures by total number. However, the 97 securities offering shares were a decrease compared to the 167 shares of this type initiated in 2023. There was also a sharp drop in suffering actions (from 121 in 2023 to 59 in 2024) and actions of report, audit and accounting of issuers (107 to 60).
The law enforcement division obtained nearly $ 8.2 billion in financial appeals, which includes $ 6.1 billion in prejudicial respect and interest and $ 2.1 billion in civil penalties. Out of nearly $ 8.2 billion – the highest amount in the history of the SEC – approximately 56% is attributable to a monetary judgment obtained following the trial before the dry against Terraform Labs and Do Kwon, which involved multi -year fraud involving securities of cryptographic assets. See dry c. Terraform labs pte ltd.N ° 23-CV-1346 (SDNY). 28%, or 600 million dollars in civil penalties, were attributable to the “out channel” communication initiative.
The SEC also distributed $ 345 million to injured investors, compared to $ 930 million distributed during the year 2023.
The SEC also said that it has received 45,130 tips, complaints and references, the ever ever made for the dry. Of the total, there were more than 24,000 denunciation councils, although 14,000 were submitted by two people, which means that the two people made around 28 reports per day. The Dry Bureau of the Denunciator reported separately His results for the year 2024. According to the Bureau of the Denunciator, “(T), he represented nearly 7,000 of the 18,354 denunciation councils subject to the 2023 financial year.” Identifier. at 11 n.32.
The SEC has credited the market players who have declared or cooperated significantly with surveys, praising the cases in which the SEC approved resolutions which imposed civil penalties reduced or not in response. The dry also underlined:
- Cases of file holding, mainly focused on communications outside the channel, which led to more than $ 600 million in civil penalties against more than 70 companies;
- Marketing rule that led to accusations established against more than a dozen investment advisers;
- Case of protection against denunciators, including a civil sanction of $ 18 million against JP Morgan, the largest sanction for an autonomous violation of the rule of protection of the denunciators; And
- Cases involving emerging technologies and emerging risks, such as artificial intelligence, cybersecurity and crypto. These are likely to remain areas of interest.
Overall, the 26% drop in total application shares, with downward trends in each category of application shares, represents a reversal of the post-pandemic trend in increases. However, Sanjay Wadhwa, acting director of the law application division, suggested that the downward trend could be the result of improving the compliance of the industry, and also noted that the figures do not take into account “innumerable surveys which may not have led to an action in application of evidence or other reasons”, but that the participants have nevertheless broken.
With the next change of administration, we are sure to see a change in the priorities of the law enforcement division. We expect to see less the emphasis on non -society accusations, such as books and violations of the files, and the more emphasis on fraud involving significant losses for investors. It is also likely that the SEC will adopt a different approach to the “Crypto” application. Rather than an approach to “regulatory application”, we expect to see the emission advice from dry to industry. Almost certainly, we will see the size of companies in companies decreasing. Some things will remain the same. The SEC will continue to present initiate crime cases and continue to work in cooperation with the Ministry of Justice and other government agencies.
