Corporate Counsel quoted partner Kelly Gibson regarding the US Securities and Exchange Commission’s (SEC’s) approach to enforcement in recent years. In an interview following her appearance as a panelist at ALM Global’s General Counsel Conference East, Kelly discussed how the SEC has taken a harder line when issuing penalties.
“Typically in the past, if we were dealing with the SEC on our resolution, and trying to negotiate a settlement, we would look to and point to past precedent to try and determine approximately where we should come out in terms of charging decisions and financial remedies,” Kelly said, noting that Gurbir Grewal, director of the SEC’s Division of Enforcement, has been “pretty explicit . . . that he doesn’t view penalties as the cost of doing business.”
“So we’re seeing a very aggressive stance in this administration, where penalties that the SEC is assessing now really aren’t tied to precedent, and they’re much larger than they’ve been in the past,” continued Kelly.
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