Under Atkins, Report Finds Steep Drop in SEC Enforcement of Public Companies

Enforcement Actions Overview - The Securities and Exchange Commission (SEC) brought 30% fewer enforcement actions against public companies and subsidiaries in fiscal year 2025 compared to the previous year, indicating a significant decline following the change in SEC leadership under President Donald Trump [1] - Actions against investment advisors and broker/dealers rose to half of all cases filed, the highest percentage in nearly a decade [2] Timing and Composition of Enforcement Activity - Of the 56 actions against public companies and subsidiaries in FY 2025, 93% occurred before former SEC Chair Gary Gensler stepped down in January, with only three actions initiated in the second half of the year, marking the lowest number since tracking began in FY 2010 [3] - The majority of enforcement activity took place before the SEC administration change, with very few actions under the new administration [4] Leadership Transition Impact - The second-half activity reached historic lows with only two actions in the fourth quarter of FY 2025, compared to the previous low of six actions in 2011 and a second-half low of 19 actions in FY 2017 [5] - The first quarter of FY 2025, during Gensler's last three months, set records with 118 standalone enforcement actions and 29 public company and subsidiary actions, both all-time highs [6] Monetary Settlements - FY 2025 recorded the lowest total monetary settlements during an SEC administration change at $808 million, the lowest since 2012, although the median monetary settlement exceeded levels seen in 2013 and 2021, remaining below 2017 figures [6]