On February 4-5, 2011, the U.S. Securities and Exchange Commission (SEC) held its annual SEC Speaks program in Washington, D.C. While much of the event focused on the intense, often technical rulemaking activity at the Commission occasioned by the 2010 passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), staff from the Commission also provided useful information about the direction and priorities of the agency’s Enforcement program.

Specialized Units

Deputy Director of Enforcement Loren Reisner reported that the Enforcement Division’s five specialized units—the Chiefs of which were first announced in January 2010i—have been “up and running” and staffed since March 2010. He added that the units have been engaged in dozens of investigations as well as specialized training sessions for their members. According to Reisner, the size of the units ranges from a low of 25 staff (Municipal Securities and Public Pensions) to a high of 65 staff (Asset Management), with approximately one quarter of the Enforcement staff assigned to one of the units. The Foreign Corrupt Practices Act (FCPA) unit, for example, has 30 staff members across five regions and the home office. Reisner also noted that the units have hired industry experts in addition to the many lawyers and accountants that comprise the Enforcement staff. These experts include traders, managers, and analysts who formerly worked for investment banks, hedge funds, and other entities regulated by the Commission.

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