New SEC Chairman Schapiro Pledges Swift and Vigorous Enforcement

In her opening address before the annual “SEC Speaks” conference on February 6, new Securities and Exchange Commission (SEC or the Commission) Chairman Mary L. Schapiro pledged to reinvigorate the Commission’s enforcement program and announced two significant changes to the enforcement process. First, Chairman Schapiro ended a two-year penalty pilot program, which had required that the Staff first seek the input of the Commissioners before discussing civil money penalties in enforcement cases against public companies. Second, Chairman Schapiro promised to expedite the investigative process through more rapid approval of formal orders of investigation that authorize the Staff to issue subpoenas. In addition, Chairman Schapiro set forth further policy initiatives designed to restore investor trust and confidence. Through these new measures, the new Chairman pledged swift and vigorous prosecution of securities fraud.

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