SEC Enforcement Actions Clause Samples
SEC Enforcement Actions. I created Figure 1 to illustrate the typical timeline of an enforcement action, based on the SEC’s enforcement manual (SEC 2015b). Usually, an SEC enforcement action begins with a Matter Under Inquiry (MUI). SEC staff (assistant director level and below) can open a MUI based on various information sources and triggering events, such as tips from whistleblowers, restatements, referrals from other agencies, and newspaper articles. The threshold for opening a new MUI is low, because its main purpose is to determine whether an investigation is an appropriate use of resources (SEC 2015b, p.12). Within 60 days of starting a MUI, the SEC staff collects information and consults with the associate director to determine whether to convert the MUI to an investigation. The threshold to launch an investigation is much higher than that for creating a MUI (SEC 2015b, p.15). During an investigation, the SEC staff may contact corresponding firms or individuals to obtain evidence and then they make an enforcement recommendation (to litigate or not) to the head of the Division of Enforcement. Next, the head of the Division of Enforcement takes the recommendation to the five commissioners, who jointly decide on litigation in closed meetings. If the commissioners choose to litigate, they subsequently select the enforcement venue, either an SEC administrative proceeding or federal district court. Although the SEC staff has more discretion in the initial stages of an enforcement action (e.g., which leads to pursue and whether to launch an investigation), the five SEC commissioners enjoy more discretion in the later stages of an enforcement action (e.g., whether to file an enforcement action or not, and which venue to file an enforcement action). Prior studies have mostly focused on the investigation stage of SEC enforcement actions. For example, ▇▇▇▇▇ and ▇▇▇▇▇▇▇▇ (2011) study whether the SEC is more likely to investigate firms located closer to its offices. ▇▇▇▇▇ (2015) examines whether the SEC is less likely to initiate investigations against larger firms. My paper differs from these studies by focusing on the SEC’s court venue choice after cases have been selected for litigation. The court venue selection stage occurs after the initial stages of enforcement and is thus subject to the discretion of SEC commissioners.
SEC Enforcement Actions. First Growth has not been the subject of any enforcement or other actions which have questioned its compliance with applicable rules, including without limitation SEC rules and regulations, and the trading rules (OTCBB, as applicable). First Growth has received no notice that its common stock is not eligible for quotation.
SEC Enforcement Actions. Advise the Stockholders of such Registrable Shares, promptly after it shall receive notice or obtain knowledge thereof, of the issuance of any stop order issued by the SEC suspending the effectiveness of such registration statement or the initiation or threatening of any proceeding for such purpose and promptly use its best efforts to prevent the issuance of any stop order or to obtain its withdrawal at the earliest possible moment if such stop order should be issued.
SEC Enforcement Actions. The Company has not been the subject of any enforcement or other actions which have questioned its compliance with applicable rules, including without limitation SEC rules and regulations, and the trading rules (OTCBB, as applicable). The Company has received no notice that its common stock is not eligible for quotation.