The SEC has launched an online search took that includes a database of all individuals who have settled, defaulted, or contested an SEC enforcement action that resulted in a final judgement or order in federal court or an administrative proceeding. The new system called SALI – SEC Action Lookup for Individuals – includes any respondent/defendant and not just investment professionals. The current database extends back to 2014, although the SEC intends to expand the database.
OUR TAKE: The SALI database closes an information gap that made it cumbersome for investors to investigate charges against unregistered individuals. The system also facilitates research of wrongdoing by investment pros. This continues the regulators’ expressed goal of weeding out bad actors from the securities industry.