Former judge Margaret Ryan became the Director of the Securities and Exchange Commission’s Division of Enforcement in September 2025. But it was not until last week, in February 2026, that she made her first public speech as Director. Judge Ryan’s remarks are notable because they rejected the idea that SEC enforcement is not a priority for the current Commission, highlighted areas of emphasis for enforcement going forward, and emphasized the importance of process for companies and individuals under investigation. The key points are summarized below:
First, Judge Ryan stressed, “reports that enforcement work at the SEC has been tossed to the wayside are not only greatly exaggerated but flat out wrong.” (Emphasis added.) Judge Ryan pushed back on those who might interpret fewer enforcement cases in 2025 to signal a less active SEC enforcement program. But Judge Ryan added that she cares more about “the quality and impact” of enforcement actions than the number of cases.
Second, regarding areas of emphasis, Judge Ryan explained that the Enforcement Division would focus on fraud cases, especially where retail investors are harmed, as well as “accounting fraud, insider trading, wash trading, and market manipulation schemes.” In Director Ryan’s view, these types of cases illustrate “returning to the basics” of SEC enforcement.
Third, Judge Ryan took a somewhat nuanced approach to non-fraud violations involving public company reporting, books and records, internal controls, and broker-dealer and investment adviser violations. Judge Ryan opined that such violations are “not necessarily” “on par with fraud.” But, she noted, the SEC would bring cases for these violations “where fraud is absent, but compliance has failed in a way that poses risks to investors,” risks to market integrity, or benefits to the violator. Judge Ryan also stated that these non-fraud cases may present opportunities “to craft thoughtful resolutions” to investigations.
Finally, Judge Ryan emphasized the importance of “transparent and appropriate process” for individuals and companies under investigation. Echoing prior remarks by SEC Chairman Paul Atkins, Judge Ryan underscored recent revisions to the SEC’s Wells process – the process by which the SEC staff provides notice that it intends to recommend charges and allows the individual or company at issue the opportunity to make a Wells submission explaining its view of the matter. Judge Ryan noted that recipients of a Wells notice will now have at least four weeks to make their submission (a longer default period than previously given). And, if the recipient requests a Wells meeting to plead their case, a “member of the enforcement senior leadership team will attend every Wells meeting,” which did not always happen under prior leadership.
In sum, Judge Ryan pushed back forcefully on any suggestion that the Division of Enforcement is not active and engaged in its important work. And she seemed willing to give companies and individuals a fair opportunity to present their views before an enforcement action is brought.
