SEC Unveils Specialized Units and New Cooperation Standards

The Securities and Exchange Commission (the “SEC”) recently announced several significant changes designed to strengthen its enforcement program and to respond to recent criticism concerning the agency’s purported failure to detect several highly publicized securities frauds, including the Madoff case. These changes included the appointment of chiefs to the Division of Enforcement’s newly created “Specialized Units,” and implementation of several procedures to encourage meaningful cooperation in SEC investigations. While these changes reflect the Enforcement Division’s continued focus on restoring its image as a premier law enforcement agency, the extent to which they impact future investigations remains uncertain.

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