SEC Enforcement Initiatives Include Office of Market Intelligence, Cooperation Policy Statement

At a press conference this afternoon, SEC Enforcement Director Robert Khuzami announced several new initiatives, detailed further in these press releases:

SEC Names New Specialized Unit Chiefs and Head of New Office of Market Intelligence (OMI)

SEC Announces Initiative to Encourage Individuals and Companies to Cooperate and Assist in Investigations. The new initiatives aimed at maximizing the benefits from cooperation include:

1. New tools for cooperation, specifically, cooperation agreements , deferred prosecution agreements and non-prosecution agreements.
2. Streamlin[ing] the process for submitting witness immunity requests to the Justice Department.
3. Newly issued Policy Statement Concerning Cooperation by Individuals in its Investigations and Related Enforcement Actions. Building on the “Seaboard Report” issued in 2001, the new policy statement identifies four general considerations: (i) The assistance provided by the cooperating individual. (ii) The importance of the underlying matter in which the individual cooperated. (iii) The societal interest in ensuring the individual is held accountable for his or her misconduct. (iv) The appropriateness of cooperation credit based upon the risk profile of the cooperating individual.

Additional information is in the updated SEC Enforcement Manual. An archived webcast of the SEC’s press conference will be available on the SEC Web site, and it is possible that Khuzami’s remarks at the press conference will be posted under speeches.

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