How Enforcement Will Play Out in 2023: SEC Roundup

Welcome to SEC Roundup, a bimonthly video series by Paul Hastings partners and former Securities and Exchange Commission senior trial counsels Nick Morgan and Tom Zaccaro exploring current SEC topics with thought leaders and industry experts.

In this episode, Paul Hastings partners and former SEC enforcement attorneys Ken Herzinger, Morgan Miller, Zaccaro and Morgan discuss the SEC’s annual enforcement report for 2022 and enforcement areas the agency will likely focus on in 2023.

The SEC filed 760 enforcement actions in fiscal year 2022, a 9% increase over the prior year.

“Insider trading continues to be a staple” of the SEC’s enforcement program, Zaccaro says. “I think we’ll see more unique and out-of-the box applications of the insider trading theory.”

Themes on the internal control side such as the use of compliance consultants, the role of compliance when it comes to using personal devices “and how that is really fitting in to the fabric of the company’s internal controls, and how they’re maintaining and managing communications” will also continue to be a focus, according to Miller.