SEC Enforcement in Financial Reporting and Disclosure—2018 Year-End Update
In 2018, the SEC continued to pursue many of the same initiatives and objectives it articulated in 2017, including emphasizing retail investor protections and keeping pace with technological change. While stand-alone enforcement actions increased in 2018, the number of financial reporting or disclosure cases continued to decline. Consistent with its public statements and despite its resource constraints in 2018, the SEC seems to be prioritizing financial reporting, internal controls, and disclosure cases impacting "Main Street" investors, particularly those involving other programmatic priorities such as crypto technologies and cybersecurity. Regardless, public companies should remain vigilant regarding potential risks, and continue to implement and maintain strong, robust controls.
Jones Day publications should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general information purposes only and may not be quoted or referred to in any other publication or proceeding without the prior written consent of the Firm, to be given or withheld at our discretion. To request reprint permission for any of our publications, please use our “Contact Us” form, which can be found on our website at www.jonesday.com. The mailing of this publication is not intended to create, and receipt of it does not constitute, an attorney-client relationship. The views set forth herein are the personal views of the authors and do not necessarily reflect those of the Firm.