SEC's History Undercuts Its 'Back To Basics' Rationale

In a Law360 article, Gerald Hodgkins examines the U.S. Securities and Exchange Commission’s historical approach to enforcement in light of the agency’s recent emphasis on getting “back to basics” and prioritizing fraud and investor harm. Drawing on SEC annual reports dating back to the agency’s early years, Jerry explains that the SEC has historically pursued not only fraud, but also violations of technical and prophylactic rules designed to protect investors and the integrity of the securities markets.

Jerry concludes that, viewed against this history, a retreat from enforcing technical compliance would represent a departure from the SEC’s longstanding enforcement philosophy rather than a return to its traditional mission.