Here’s a Client Update that lists five takeaways from the SEC Enforcement Staff at the recent PLI “SEC Speaks” conference. Here’s an excerpt with one of those takeaways:

“Focus on Gatekeeper and Entity Liability To Increase Transparency and Trust in the Markets

The SEC reaffirmed its commitment to holding gatekeepers accountable, underscoring the vital role that gatekeepers play in safeguarding investor interests. Panelists emphasized the SEC’s capacity to enforce regulations and professional norms among gatekeepers, which, according to SEC staff, is “critical” to properly functioning capital markets.

In addition to underscoring the significance of the gatekeeper function, the staff highlighted the importance of registrants’ implementation of robust controls to ensure investors receive accurate information. Indeed, the SEC’s focus extends beyond gatekeepers to encompass the entities themselves, highlighting the need for proper internal controls over financial reporting and disclosure reporting procedures. The SEC aims to move beyond the notion that penalties are merely a business expense—the cost of doing business—and instead advocates for deterrent-focused remedies. Market participants should continue to ensure controls are up –to date and act together with gatekeepers to provide adequate protections to investors.”

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Photo of Broc Romanek Broc Romanek

As a strategist for the firm’s Corporate & Securities practice, Broc Romanek has a deep understanding of the regulatory and environmental, social, and governance (ESG) marketplace. Prior to joining Perkins Coie, Broc served as editor at TheCorporateCounsel.net, CompensationStandards.com, and DealLawyers.com, where he oversaw…

As a strategist for the firm’s Corporate & Securities practice, Broc Romanek has a deep understanding of the regulatory and environmental, social, and governance (ESG) marketplace. Prior to joining Perkins Coie, Broc served as editor at TheCorporateCounsel.net, CompensationStandards.com, and DealLawyers.com, where he oversaw and managed coverage on issues related to ESG, corporate governance, executive pay, deals, and market trends and analysis.

In addition to his nearly two decades of working as a journalist and publisher, Broc served as assistant general counsel at a Fortune 50 company, worked in the Office of Chief Counsel of the U.S. Securities and Exchange Commission’s (SEC) Division of Corporation Finance, was a counselor to former SEC Commissioner Laura Unger, and worked in private practice. He also is the author, or co-author, of four legal treatises, and has authored several books focused on the legal industry.