Thursday, February 18, 2010

SEC Announces New Specialized Enforcement Unit Targeting Asset Management

On January 13, 2010, the U.S. Securities and Exchange Commission (SEC) announced the establishment of five new specialized enforcement divisions as part of what it called its "most significant reorganization since its establishment in 1972." The areas targeted by the new specialized units are: Asset Management, Market Abuse, Structured and New Products, Foreign Corrupt Practices, and Municipal Securities and Public Pensions.

The Asset Management unit will be led by Co-Chiefs Bruce Karpati and Robert B. Kaplan and will focus on investigations involving investment advisors, investment companies, hedge funds and private equity funds. In a speech given on February 5, 2010, SEC Commissioner Elisse B. Walter declared these areas "high-priority areas of enforcement" and announced that the staff will dedicate resources and redeploy some of its most talented personnel to combat fraud and misconduct in these specialized areas.