The Securities and Exchange Commission (SEC) plays an extremely important role within the securities industry—it oversees the financial markets, protects consumers, and maintains market efficiency. One of the most important (and recently one of most criticized) responsibilities of the SEC is its duty to enforce the securities laws and punish violators. During the past two decades, and especially after the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010, the SEC’s Division of Enforcement has grown substantially and has utilized administrative enforcement proceedings at an increasing rate. However; this utilization has been occurring without any substantial change to its Rules of Practice and without any formal process by which it chooses a forum. The SEC recently amended its Rules of Practice in hopes to hush the critics and restore confidence, but the underlying problems still have not been completely remedied. In order to rectify these issues, this Note argues the SEC must further revise its Rules of Practice in order to create stricter guidelines regarding choice of forum, extend the discovery timeline for respondents; increase the number of depositions allotted to respondents, and reduce the admissibility of hearsay.
The Choice is (Not) Yours: Why the SEC Must Further Amend Its Rules of Practice to Increase Fairness in Administrative Proceedings,
11 Brook. J. Corp. Fin. & Com. L.
Available at: https://brooklynworks.brooklaw.edu/bjcfcl/vol11/iss1/8