Less sweeps by SEC, more to uncover investor harm (CFO Dive)

Enforcement activity from the SEC is a given, but upcoming changes to its leadership will likely shift it from an aggressive stance to a more measured approach. With the lead comments in the CFO Dive story, FrontLine Compliance Founder and President Amy Lynch sees former SEC Chair Gary Gensler and incoming Chair Paul Atkins at complete opposite ends of the spectrum. She states that instead of emphasizing large-scale enforcement sweeps focused on groups of firms, the SEC under Atkins will probably rely more on individual tips, complaints and referrals from other agencies. Despite how Atkins may be viewed as softer on regulation, CFOs should think twice before restricting compliance budgets since Atkins could follow Gensler’s policy approach on key regulatory issues and greater protections for investors. Ms. Lynch explains that for instance, there is a clear understanding of the role cybersecurity plays and if Atkins tones down regulation too much, investors will intensify scrutiny to ensure firms are held accountable. See CFO Dive (free subscription), “Trump’s softer-touch SEC may ease CFO regulatory burden”