Robust Remedies Are an Enforcement Priority, Says the SEC

The Securities and Exchange Commission (SEC) filed 68 enforcement actions against public companies and subsidiaries in FY 2022, reflecting a 28% increase from the previous year. It imposed monetary settlements in the amount of $2.8 billion on 97% of the 75 public company and subsidiary defendants that settled this year. Both the dollar amount and the percentage were the largest of any fiscal year recorded in the Securities Enforcement Empirical Database (SEED). Sixteen defendants, a substantial increase from the previous fiscal year, settled with admissions of guilt, driven by actions involving broker-dealer allegations brought by the SEC. That number was double the largest number in any previous fiscal year in SEED. Nearly 70% of the 16 broker-dealer actions were filed against financial institutions. The increase in monetary settlements is consistent with the SEC’s public statements that “robust remedies” are an enforcement priority. Despite ongoing challenges to the constitutionality of its use of administrative law judges, the SEC has continued to bring most of its actions (88%) as administrative proceedings in FY 2022.