SEC Issues Policy Statement Concerning Cooperation by Individuals in its Investigations and Related Enforcement Actions

January 14, 2010

The SEC issued a policy statement setting forth the analytical framework it uses to evaluate cooperation by individuals when it is conducting investigations.  The SEC stated that the framework serves the following two important purposes:

  • it promotes the fair and effective exercise of discretion by the Commission, and
  • it enhances confidence on the part of the public and cooperating individuals that decisions regarding cooperation in the SEC's investigations and related enforcement actions will be made in an appropriate and consistent manner.

The stated goal of the initiative is "to establish incentives for individuals and companies to fully and truthfully cooperate and assist with SEC investigations and enforcement actions, and provides new tools to help investigators develop first-hand evidence to build the strongest possible cases. The cooperation initiative is expected to result in invaluable and early assistance in identifying the scope, participants, victims and ill-gotten gains associated with fraudulent schemes."

Click to access the policy statement.


Enforcement Actions