Home » bad actors

Tag: bad actors

SEC Creates Website to Search Enforcement Cases for Bad Actors

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.

https://www.sec.gov/litigations/sec-action-look-up

SEC to Create Website of Bad Actors

In a recent speech, the SEC Chairman, Jay Clayton, announced that the SEC is creating a searchable website of those individuals that have been barred or suspended from the securities industry.  Mr. Clayton expressed concern that investors cannot uncover bad actors that have “shifted from the registered space…to the unregistered space.”  Mr. Clayton explained that the website “is intended to make the prior actions of repeat offenders and fraudsters more visible to investors.”

OUR TAKE: This “Scarlet Letter” approach to prevention ups the ante for those barred from the industry in civil enforcement actions.  It is unclear whether such a website will be any more or less effective than the CRD system, which reports disciplinary histories.