On October 22, SEC’s Office of Investor Education and Advocacy issued an Investor Bulletin to provide investors with a general overview of how the SEC’s Division of Enforcement conducts investigations. The Bulletin states that the Division of Enforcement may be more likely to initiate an investigation if the matter:
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Requires immediate action to protect investors;
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Relates to conduct that may threaten the fairness or liquidity of the securities markets;
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Involves individuals with a history of misconduct;
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Involves a subject matter the SEC or Enforcement has designated as a priority;
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Fulfills a programmatic goal of the SEC and Enforcement; or
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Concerns an industry practice that may be widespread and should be addressed. Bulletin.
