SEC Chairman Schapiro's Speech on Enforcement

SEC Chairman Mary L. Schapiro made remarks on the progress of the SEC's Enforcement program. In her speech, Schapiro asserts that the Commission has been doing everything it can under current law to make markets safer for investors through aggressive action, rapid restructuring and increased collaboration at both the federal and state levels. For instance, Schapiro discusses how the SEC has successfully pursued insider trading by both low-level conspirators and senior executives with ties to some of the nation's most prestigious organizations and has increased assault on overseas bribery and corruption. The SEC has also restructured the Division of Enforcement by creating five specialized units to focus on complex or critical areas of securities law. According to Chairman Schapiro, through these improvements, the SEC has transitioned to a more aggressive and nimble agency.

Chairman Schapiro also discusses how some critics believe that, despite record penalties, the SEC should be levying penalties with an even stronger deterrent message. However, Schapiro argues that the SEC is restricted on what penalties it can obtain. For example, the SEC is not permitted to base its penalties on how much investors have lost. Chairman Schapiro further concludes her speech by suggesting that Congress should consider broadening the SEC's power to recover amounts better reflective of investor losses.

View speech in full here (links externally to SEC website).