Bumper Crop Of Enforcement Actions

If you think the SEC is having a field day with new regulations, just check out the number of enforcement actions the regulator has issued in the last year. In 2003, the SEC’s enforcement division filed 679 enforcement actions, more than in any previous year. SEC Chairman William Donaldson said at the recent conference of the Investment Counsel Association of America (ICAA) that “the SEC has also increased the frequency of examinations of those funds, advisers, and other market participants posing the greatest compliance risk, and [is] conducting more examinations targeted to areas of emerging compliance risk.”

Moreover, don’t be surprised if there’s a new face during your next exam. In a recent interview with Investment Advisor, Stephen Cutler, director of the SEC’s Division of Enforcement, said he’s now sending some members of his enforcement staff out with examiners. Cutler says he’s also “doing a better job of training, including offering Series 7″ licenses to his staff.