SEC Names Asset Management Enforcement Co-Chiefs, Legislative Director

The SEC announced Monday the appointment of Julie Riewe and Marshall Sprung as co-chiefs of the Division of Enforcement’s asset management unit, succeeding Bruce Karpati, who led the unit as a co-chief since its January 2010 inception but who left the commission in May.

Since May 2012, both Riewe and Sprung had been serving as deputy chiefs of the unit, whose charter, according to the SEC, is to focus “on misconduct by investment advisers, investment companies and private funds.” 

Riewe (right), who joined the SEC in 2005, and Sprung, who joined the SEC in 2003, became deputy chiefs following the departure of the Asset Management Unit’s original co-chief, Robert Kaplan. 

In an interview with AdvisorOne after he joined the law firm Devevoise & Plimpton on June 1, 2012, Kaplan argued that “the single most significant trend in securities enforcement today is the increased allocation of resources to misconduct by investment advisors.” At that time, the unit comprised 75 lawyers and industry experts who focused on investigations related to potential violations of securities laws by advisors to hedge funds, private equity funds, mutual funds and separately managed accounts.

Kaplan said the unit had been “unprecedented in its success,” which he attributed to hiring more staff members with industry expertise, the unit’s focus on proactively identifying misconduct earlier, and “breaking down silos” by collaborating with other SEC divisions.

According to the SEC’s release announcing the new appointments, both Riewe and Sprung have already contributed significantly to the Asset Management Unit’s actions.