Articles Tagged with commission

When you receive an SEC subpoena, one of the first things that you want to know is “how long before this is over?” While that is an important question, it unfortunately is not one that has a definite answer.

Frequently, the time to produce materials will range from weeks to about a month. As we said yesterday in our post about what materials are required to be produced, an extension of time to produce documents may be negotiated. Also, if the materials requested are more difficult to obtain or require forensic computing, the time to produce may be longer as well.

Once you have produced documents, the waiting game begins. Before anything else happens, the Commission usually will review the materials you have provided. Typically, once they have reviewed your production, the Commission will either: 1. Make a supplemental request of you for more documents, 2. Call you in for testimony, or 3. Choose not to have you in for testimony.

The sad truth is that the Government loves the easy kill.  It is often easier for regulators to extract settlements and punishments against smaller market participants, including brokers, traders and analysts, than the giant wire houses, because large companies can match the resources of the Government.

The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), among other regulators, regularly engage in investigations to explore, deter and punish market conduct that violates the securities laws and industry rules.  While it can be hard to know what those investigations will be, the regulators like the SEC disclose regulatory priorities on an annual basis.  These examination priorities are areas where the SEC will be dedicating resources throughout 2016.

Of the 2016 Priorities announced by the SEC, the following may lead to broad investigations: