SEC lays out policing plans after departure of enforcement head

The acting head of the Securities and Exchange Commission's enforcement division said he'll focus on "quality over quantity" in bringing cases, the first signal of the regulator's priorities days after the resignation of the unit's chief.

The Wall Street watchdog's enforcement actions have plunged during the second Trump administration, as have the size of the penalties levied on firms and individuals. Acting SEC Enforcement Director Sam Waldon acknowledged this drop.

"I know folks like to focus on numbers, number of cases," Waldon said at a securities law conference in Washington on Friday. "And I get it."

He said those figures don't indicate the effectiveness of an enforcement program, adding the team has been directed to focus on bringing cases that harm investors, such as insider trading, accounting fraud cases, market manipulation and breach of fiduciary duty by investment advisers.

"We will continue to bring non-fraud cases in the right circumstances," Waldon said.

The vision appears to largely align with former enforcement chief Margaret "Meg" Ryan, who resigned earlier this week after about six months on the job. 

A former Marine and senior judge of the U.S. Court of Appeals for the Armed Forces, Ryan was on a list of potential Supreme Court nominees during President Donald Trump's first term in office. She was an unusual pick last year to head the agency's enforcement unit, as most previous directors' resumes have included stints in the securities law practices of white-shoe law firms, federal prosecutors offices or had past experience at the SEC.

Ryan gave no reason for her resignation, which was effective immediately. A person familiar with the situation, who asked not to be identified discussing the circumstances of the move, said she wasn't fired.