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On Friday, David Woodcock, Director of the SEC’s Division of Enforcement, delivered remarks at The University of Texas School of Law’s 12th Annual Government Enforcement Institute. In his remarks, he provided an update on the SEC’s Enforcement program and highlighted some recently launched initiatives aimed at strengthening the agency’s enforcement efforts and removing roadblocks to efficient enforcement. He noted:

Rather than striving to bring an ever-increasing number of enforcement actions—without regard for their impact or their capacity to positively affect capital markets and investors—I am focused on administering an enforcement program that is strong and visible in the marketplace. As former SEC Chairman Harvey Pitt noted, “an essential predicate for any effective enforcement program is visibility.” The market must see—and feel—that Enforcement is on the job and market participants need to understand that if they violate the securities laws, they will suffer the consequences. We want bad actors to know that Enforcement is committed to detecting and shutting down their misconduct, holding them accountable, and putting appropriate measures in place to prevent them from continuing to violate the law. An enforcement program that is visible contributes to healthy markets and makes investors better off. I am not preoccupied with numbers, because when the Enforcement Division empowers the staff to work efficiently, removes barriers to effective enforcement, and prioritizes impactful cases—and we are—we will produce results without needing to chase numbers.

The Director highlighted the work of the newly-launched Financial Reporting and Accounting Unit and Retail Fraud Working Group, while noting a new focus on the use of technology and coordination, stating:

At the same time, we are examining ways to force multiply through creative uses of technology and through increased interagency coordination. The Division has a new Office of Artificial Intelligence & Analytics, which is focusing on accelerating our practical implementation of Artificial Intelligence and Analytics. We are laser focused on enabling our existing talented workforce to harness these tools to make us much more efficient—freeing our most valuable resource (the staff) to spend more time on case generation, assessment, and thinking.

A word regarding our coordination efforts. I’ve said it before, but we confront increasingly complex schemes that cross borders, regulatory sectors, and legal frameworks, and no single agency can address it in isolation. That is why we are working hard to leverage opportunities to better coordinate with our regulatory and law enforcement partners. The Commission recently announced an MOU with the FDA aimed at enhancing our cooperation in carrying out our regulatory and enforcement responsibilities and facilitating relevant information-sharing. From the Division’s perspective, FDA-related disclosures have a significant impact on our markets, and fostering a closer partnership with the FDA goes hand-in-hand with our responsibility to enforce applicable disclosure requirements under the securities laws. We’re also coordinating our respective enforcement operations with the CFTC through the Harmonization Initiative; working in tandem with the PCAOB to support their important role in the enforcement landscape; and pursuing opportunities for close collaboration with U.S. Attorneys’ Offices, including S.D.N.Y. and here in the Northern District of Texas.

On the topic of removing roadblocks to efficient enforcement efforts, the Director noted:

– The Enforcement Staff is closely monitoring for developments, so it is better for companies to self-report, cooperate and remediate fully.

– In order to speed up investigations, the Director is asking the Staff to consider taking testimony before document productions are complete, when appropriate.

– He expects defense counsel to cooperated fully in resolving an investigation, which involves “responding quickly and clearly to inquiries, scheduling testimony promptly, avoiding serial extensions without cause, raising issues early rather than late, and engaging constructively in pre-enforcement dialogue, which we value and encourage.”

– Defense counsel can expect the Division of Enforcement to seek to remedy subpoena compliance issues by filing subpoena enforcement actions, sooner rather than later.

– Defense counsel should understand that a meeting with a Deputy Director is a meeting with the Front Office.

In his speech, David Woodcock acknowledged that “[f]iscal year 2026 was a transitionary period, but transitions strengthen disciplined programs,” and he noted that “[w]e have recalibrated our pipeline, launched critical initiatives, and re-established core principles.”

– Dave Lynn