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A Look at Reorganization Efforts at the SEC

In his web log, "SEC Actions," Thomas O. Gorman, a partner at the law firm of Dorsey and Whitney LLP, looks at the reorganization underway in the SEC's Division of Enforcement.  In our recent post, Asset Management Unit Priorities, we described the Division's new Asset Management Unit, and its apparent intention to focus on disclosure, performance, and valuation by funds and their advisers.  Mr. Gorman's piece looks at the broader changes taking place in Enforcement.  According to Gorman, the reorganization's focus is to streamline and speed the investigative process in two ways:

  1. Eliminating a layer of management in the Division, the "branch chief" designation; and
  2. Creating specialty groups, like the Asset Management Unit, focused on particular areas of Enforcement.

Gorman looks also at the future of these reorganization efforts:

A key part of the reorganization in the future may be the new initiatives to encourage cooperation. In new Sections to the Enforcement Manual the Division, added provisions to incentivize individuals and corporations to cooperate with on-going investigations. Modeled after techniques long used by the Justice Department in criminal cases, the new initiatives offer a potential defendant the prospect of avoiding prosecution through either a non-prosecution or a deferred prosecution agreement. Again, the point is to speed the work of the Enforcement Division, a goal that is fully consistent with the newly created time limitations on investigations incorporated into Dodd-Frank.

Mr. Gorman's piece provides a concise snapshot of the Division of Enforcement's reorganization strategy, as well as some interim results from these changes.  

The full text of the piece is available at:  http://www.secactions.com/?p=2958