SEC 2024 Enforcement Results Show Decrease in Total Enforcement Efforts
SEC Enforcement Actions in 2024 Show Decline in Overall Enforcement, But Record-Breaking Financial Recovery
Recently, the Securities and Exchange Commission (SEC) announced their enforcement results for the fiscal year 2024. Compared to the previous year, there was a 26% decrease in the total number of enforcement actions filed. However, there was a remarkable $3.2 billion increase in the financial remedies obtained through orders. Let’s dive into the key highlights of the SEC’s enforcement efforts in 2024.
In the fiscal year 2024, the SEC reported a total of 583 enforcement actions, which is lower than the 784 actions reported in the previous year. This decline was seen across different categories including stand-alone enforcement actions, administrative proceedings, and actions against issuers for delinquent filings. The most common types of enforcement actions in 2024 involved investment advisers/investment companies, broker-dealers, and securities offerings.
An important milestone was reached in 2024 when the SEC obtained orders for a total of $8.2 billion in financial remedies, including disgorgement, prejudgment interest, and civil penalties. Notably, a significant portion of these financial remedies stemmed from a case involving Terraform Labs and its founder, resulting in over $4.5 billion in disgorgement, prejudgment interest, and civil penalties.
The SEC also emphasized the importance of cooperation from market participants in their investigations. They credited those who self-reported, remediated, and cooperated with the SEC in addressing compliance failures. The SEC also addressed the issue of off-channel communications, bringing recordkeeping cases against firms that violated recordkeeping requirements, resulting in $600 million in civil penalties.
Additionally, charges were settled against several investment advisers for noncompliance with the Marketing Rule. These cases focused on issues such as misleading performance advertisements and inadequate disclosures in third-party statements. The SEC’s Whistleblower Program played a significant role in driving enforcement actions in 2024, with a record-breaking 45,130 tips received. The SEC issued whistleblower awards totaling $255 million.
Overall, the SEC’s enforcement actions in 2024 reflect a commitment to upholding securities laws and holding violators accountable. The focus on cooperation, transparency, and accountability underscores the SEC’s efforts to maintain the integrity of the financial markets.
