SEC’s fraud enforcement will likely slow down

As backlash from the financial crisis ebbs, the agency will likely file fewer civil fraud cases

Since the financial crisis hit, it seems like it’s been all fraud cases all the time. But although the past two years, the Securities and Exchange Commission (SEC) has been setting records for number of enforcement actions filed, the agency is likely to file significantly fewer civil fraud cases this year, the Wall Street Journal reports.

At a conference last month in Washington D.C., acting SEC enforcement head George Canellos noted that the agency is “in a different era.” Even so, the previous “record results in enforcement” were highlighted as one of the major successes of the SEC under Mary Schapiro, who stepped down as chairman of the agency last year.

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