In a recent article published in Law360, BuckleySandler partners Thomas Sporkin and Robyn Quattrone, and associate Kendra Kinnaird, write about SEC enforcement proceedings and provide tips for minimizing missteps when interfacing with SEC staff. Counsel’s conduct and interactions with SEC staff prior to, during and following any type of informal or formal investigation can have a huge impact on the staff’s treatment and management of the proceeding. The authors review recent statements from senior government officials and examples from recent enforcement proceedings and explain that, while courtesy and professionalism will not avoid actions where they are warranted, mismanaging interactions with staff can make matters worse and even seemingly small and simple mistakes can be costly to the reputations (and wallets) of clients. To aid practitioners and companies facing an SEC investigation, the authors provide best practices for counseling clients and interacting with SEC staff prior to the filing of a formal SEC enforcement action, including tips for developing compliance programs, presenting internal investigation results, and negotiating penalties and other settlement provisions.
