1.2: Violators
Violators of federal securities laws are detected and sanctioned. Other Information:
Supporting Initiatives: 1. Risk Assessment: Through the SEC’s risk assessment initiative, a new Office of Risk Assessment
and risk assessment teams within each program will map out potential risks that threaten investors. This risk assessment process
will help the agency be much more proactive in identifying and addressing fraud.2. Coordination with Other Securities Regulators:
Because fraud often reaches beyond U.S. borders,law enforcement must also have a global reach. Therefore, the agency will
work to enhance cooperation with foreign authorities in overseeing globally active firms and improve information sharing on
investigations and cases to enhance compliance with federal securities laws. The SEC also will build upon its strong partnerships
with other domestic authorities that oversee the securities markets. 3. Document Management: The SEC receives millions of
pages of documents in the course of its examinations and enforcement investigations. The examiners and attorneys who handle
these activities could enhance their efficiency and effectiveness by having access to imaged documents in an electronic document
management system that allows for better search, analysis, and disaster recovery. 4. Automated Tools: Over the next several
years, the Commission will expand the use of automated tools to organize, analyze, and recognize aberrant patterns and exceptions
in large databases of information to target high-risk activity, monitor registrants, and more quickly identify violations.
In addition, the agency will modernize the Commission’s extensive databases to improve its ability to detect potential violations.5.
Staff Training: The SEC strongly believes that a well-trained staff is key to the agency’s success in pursuing wrongdoers.
Through efforts like “SEC University,” the agency will provide professional development opportunities that improve the performance,
skills, and industry knowledge of staff. The SEC will share tools and techniques with financial regulators and other government
agencies to ensure that the agency’s training program reflects the best practices in this area. Potential measures for monitoring
progress: 1. Percentage of investment advisers and investment companies examined relative to risk-based exam cycles. 2. Number
of interpretive requests, no-action letters,and exemptive requests responded to by staff. 3. Results of broker-dealer, investment
company, and investment adviser examinations, including the number/percent of examinations with “significant findings.” 4.
Criminal proceedings relating to SEC investigations or cases. 5. Monetary remedies or civil penalties ordered andcollected.6.
Number, nature, and complexity of requests to and by foreign regulators for enforcement assistance.
Indicator(s):
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