Statistics on SEC's Enforcement Program
GGD-85-28: Published: Mar 25, 1985. Publicly Released: Apr 4, 1985.
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In response to a congressional request, GAO reviewed the effectiveness of the Securities and Exchange Commission's (SEC) Enforcement Program. SEC was created to administer federal securities laws designed to protect the investing public and carries out this responsibility through programs designed to provide full disclosure to investors, prevent fraud in the securities market, and regulate the securities industry.
GAO found that the types of violations it investigated included: (1) trading on the basis of insider information; (2) market manipulation; and (3) sale of unregistered securities. SEC receives information on possible violations from many sources, such as public complaints, inspections of books and records of brokers and dealers, review and analysis of market surveillance, and referrals from federal, state, or local agencies. The enforcement staff must obtain SEC approval for each enforcement action before an official complaint can be filed with a federal district court or administrative law judge. According to SEC, the incidence of violations is proportional to the size and activity of the securities market and has increased the complexity of its enforcement mission. GAO observations did not indicate effectiveness in the program, because during the 7-year review, SEC appropriations and funding grew while enforcement staffing declined. Changes in the enforcement activities showed a reduced number of investigations, a decrease in the percentage of formal investigations, and an increase in the violations cited for administrative proceedings. However, GAO investigations did not show any significant changes in the types of defendants and showed that SEC consistently named more individuals than other legal entities in enforcement actions.
Apr 12, 2019
Priority Open Recommendations:
Board of Governors of the Federal Reserve SystemGAO-19-355SP: Published: Apr 5, 2019. Publicly Released: Apr 12, 2019.-
Priority Open Recommendations:
Federal Deposit Insurance CorporationGAO-19-354SP: Published: Apr 5, 2019. Publicly Released: Apr 12, 2019.
Apr 10, 2019
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Priority Open Recommendations:
Securities and Exchange CommissionGAO-19-379SP: Published: Apr 3, 2019. Publicly Released: Apr 10, 2019.
Mar 20, 2019
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Federal Home Loan Banks:
Steps Have Been Taken to Promote Board Diversity, but Challenges RemainGAO-19-252: Published: Feb 14, 2019. Publicly Released: Mar 20, 2019.
Mar 12, 2019
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Financial Technology:
Agencies Should Provide Clarification on Lenders' Use of Alternative Data [Reissued with revisions on Mar. 12, 2019.]GAO-19-111: Published: Dec 19, 2018. Publicly Released: Dec 19, 2018.
Feb 27, 2019
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Financial Services Industry:
Representation of Minorities and Women in Management and Practices to Promote Diversity, 2007-2015GAO-19-398T: Published: Feb 27, 2019. Publicly Released: Feb 27, 2019.
Feb 25, 2019
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Large Bank Supervision:
OCC Could Better Address Risk of Regulatory CaptureGAO-19-69: Published: Jan 24, 2019. Publicly Released: Feb 25, 2019.
Jan 18, 2019
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Housing Finance:
Prolonged Conservatorships of Fannie Mae and Freddie Mac Prompt Need for ReformGAO-19-239: Published: Jan 18, 2019. Publicly Released: Jan 18, 2019.
Dec 10, 2018
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Financial Company Bankruptcies:
Experts Had Mixed Views on Companies' Controls for Mitigating ObstaclesGAO-19-30: Published: Nov 8, 2018. Publicly Released: Dec 10, 2018.
Sep 5, 2018
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Community Banks:
Effect of Regulations on Small Business Lending and Institutions Appears Modest, but Lending Data Could Be ImprovedGAO-18-312: Published: Aug 6, 2018. Publicly Released: Sep 5, 2018.
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