Six Takeaways From the SEC’s FY 2021 Enforcement Results

Each year since 2017, the SEC’s Enforcement Division (Enforcement) has issued an annual report summarizing its enforcement actions and results for the fiscal year (FY). For FY 2021, however, Enforcement merely issued a press release (Release) that highlights significant actions brought between October 1, 2020, and September 30, 2021, along with an addendum containing enforcement statistics for the year. “The SEC’s Enforcement Division is the cop on the beat for America’s securities laws,” said Chair Gary Gensler in the Release. “As these results show, we go after misconduct wherever we find it in the financial system, holding individuals and companies accountable, without fear or favor, across the $100‑plus trillion capital markets we oversee.” Enforcement Director Gurbir Grewal added in the Release, “This year has seen a number of critically important and first-of-their-kind enforcement actions, as well as record-breaking achievements for our whistleblower program, which we expect will lead to even more successful actions in the future.” Despite the lack of a more detailed annual report, hedge fund managers can still identify key trends and focus areas from this overview of recent enforcement activity. This article reviews the statistics and identifies six key takeaways for fund managers. For coverage of prior Enforcement annual reports, see the 2020 Report; 2019 Report; 2018 Report; and 2017 Report.

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