Thursday, March 11, 2021
As we discussed in our recent post “What to Expect from the SEC Under the Biden Administration,” market participants can expect a more vigorous SEC enforcement program under the new administration. President Biden’s nominee to chair the SEC, Gary Gensler, was known as a tough enforcer while serving as chairman of the CFTC during the financial crisis. If confirmed as SEC Chairman by the Senate, Mr. Gensler is sure to bring an assertive approach to SEC enforcement.
Investment advisers and fund managers would be wise to prepare for heightened regulatory scrutiny of their sectors in particular. In the recent past, the SEC relied heavily on deficiency letters from exam staff