There’s been a noticeable shift in the SEC enforcement environment this year. John shared that the “September surge” didn’t materialize in 2025 – and as predicted when SEC Chair Paul Atkins took the helm, the Enforcement Division has been more focused on individual bad actors and “bread & butter” types of offenses. This Bloomberg article gives stats:

The SEC brought at least 91 new enforcement suits from Inauguration Day through the end of September, down from 126 actions filed during the same period in 2024, according to Bloomberg Law’s review of agency litigation releases and filings.

The overall drop comes as Atkins’ enforcers focus more on individual offenders than household name companies.

“The types of entities that have been under scrutiny in the Atkins administration have been SEC registrants, registered investment advisers, and broker-dealers,” said Haima Marlier, a partner at Morrison & Foerster LLP and former senior trial counsel at the SEC.

Nearly 33% of enforcement actions brought under this administration so far have focused on offering fraud or insider trading, up from 26% during the same period last year.

The shutdown and staffing cuts are probably also affecting the SEC Enforcement Division – but don’t get rid of your compliance program just yet. Earlier this week, FINRA announced a $10 million fine on a financial services firm for improper client gift practices. Over on the Radical Compliance blog, Matt Kelly shared recordkeeping and compliance lessons from that enforcement action that apply across industries and regulators.

– Liz Dunshee