SEC’s New “Broken Window” Policy

Applying a phrase from street cop law enforcement, a “broken window” policy, the SEC’s new enforcement zeal for what were considered minor infractions sends a signal which companies need to heed or suffer the consequences.

The SEC now has tools to enable it to identify and pursue a range of issues as described in a recent post on this site (click here).

This has resulted in enforcement actions against companies, board members and executives for:

Stock transaction and ownership reporting rule failures

Audit committee chair reporting failures, and

Corporate officer certification errors.

Failure to heed the message risks you and your firm becoming the next example.

Winston Strawn, the law firm, produced a podcast and slide deck on the SEC’s “broken windows” policy which is worth the review (click here).