SEC Director of the Division of Enforcement Discusses Forum Choices (with Lofchie Video Selection)

SEC Director of the Division of Enforcement ("Division") Andrew Ceresney delivered the keynote speech at the Fourth Annual White Collar Institute. In his speech, he discussed the successes of the SEC's national litigation program and how the Division selects forums in contested actions.

First, Mr. Ceresney outlined the successes of the SEC's litigation program, explaining that the Division's litigators have handled an increasingly expansive docket of litigation and trials. He highlighted significant jury trial wins during the past year, as well as successes in administrative proceedings.

Second, Mr. Ceresney discussed the use of administrative proceedings for litigated cases, explaining that Dodd-Frank expanded the SEC's authority to obtain penalties against any person in an administrative proceeding. He stated that under this authority, the SEC has brought more enforcement actions in the administrative forum. He also mentioned that the SEC often chooses to file settled matters in an administrative forum "largely because of efficiency."

Additionally, Mr. Ceresney described how the Division determines which forum to recommend to the SEC in each case, and mentioned that the Division issued a public guidance on forum selection recently. He explained that although "there is no rigid formula dictating the choice of appropriate forum," the Division considers a number of factors, including (i) the availability of the desired claims, legal theories, and forms of relief in each forum, (ii) whether any charged party is a registered entity or an individual associated with a registered entity, and (iii) the cost, resource and time-effectiveness of litigation in each forum.

Lofchie Video Selection: Regarding the Choice of Forum.