Potential Impact of Trump’s Second Term on SEC Off-Channel Texting Probe
After a thorough investigation by the SEC and CFTC on Wall Street recordkeeping practices over the past three years, Corporate Investigations & White Collar Defense partner David Oliwenstein shared his insights with Corporate Counsel. He mentioned that with Trump’s appointees taking over at the SEC, it seems likely that the scrutiny around off-channel communications will come to a halt soon.
While there may be a few older cases in the works that the SEC staff will try to wrap up before the new leadership is fully in place, Oliwenstein anticipates that this will signal the end of the widespread investigation. However, enforcement of rules will continue, particularly through the Division of Examinations focusing on off-channel communications during examinations.
Speaking about the Enforcement Division, Oliwenstein suggested that they may only pursue cases for more severe and widespread violations moving forward. Additionally, he expects that any penalties imposed are likely to decrease, and there may be less emphasis on compelling regulated entities to hire compliance consultants.
It’s essential to keep an eye on how these developments unfold, as they could have a significant impact on the regulatory landscape. These changes might lead to a shift in how securities enforcement actions are approached in the future. For a more in-depth look at the topic, you can access the full article for further details.
