U.S. Chamber’s CCMC Releases Report on SEC Enforcement Practices, Provides Recommendations for Improvement

Wednesday, July 15, 2015 - 9:15am

WASHINGTON, D.C.—The U.S. Chamber of Commerce’s Center for Capital Markets Competitiveness (CCMC) today released Examining U.S. Securities and Exchange Commission Enforcement: Recommendations on Current Processes and Practices, a report that looks at the enforcement practices of the Securities and Exchange Commission (SEC) and provides recommendations on how to improve the process for all participants.

“Both investors and market participants all benefit from tough-as-nails, effective enforcement coupled with a clear and fair process” said David Hirschmann, president and CEO of CCMC. “The recommendations in this report are designed to further strengthen the SEC enforcement program’s ability to detect and deter fraud while also ensuring honest market participants benefit from a clear and fair investigations process.”

Released at an event at the Chamber, the report looks at three categories: recommendations on SEC enforcement policies, recommendations on commission oversight of the enforcement program, and recommendations on SEC investigation processes and practices

“The SEC’s Enforcement Program is a crucial component of its mission. Our research identified a number of ways the SEC can build on the progress it has made to create a level playing field through effective enforcement, and at the same time address ambiguities in the process that can cause unnecessary and counter-productive confusion,” Hirschmann said. “The report makes 28 separate recommendations, which range from integrating trial attorneys into the investigative process to building out due process reforms with the increased use of Administrative Law Judges.”

U.S. Securities and Exchange Commission Enforcement: Recommendations on Current Processes and Practices is the result of a yearlong effort that included surveys and interviews of a diverse group of in-house counsels, securities lawyers, and former SEC staff.

You can read a full copy of the report here.

Since its inception in 2007, the Center for Capital Markets Competitiveness has led a bipartisan effort to modernize and strengthen the outmoded regulatory systems that have governed our capital markets. The CCMC is committed to working aggressively with the administration, Congress, and global leaders to implement reforms to strengthen the economy, restore investor confidence, and ensure well-functioning capital markets.

The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.