2023-06-05 11:04:38 ET
The Securities and Exchange Commission has dismissed proceedings against 42 individuals/companies after it completed a review into separation of the regulator's enforcement and adjudication arms.
Adjudication refers to the part of the SEC that decides cases and resolves disputes. That section of the SEC is meant to stay separate from the division that seeks to enforce SEC rules.
As a result of the review, proceedings involving Digital Brand Media & Marketing Group ( OTCPK:DBMM ), Genoil ( OTCPK:GNOLF ), and ERHC Energy ( OTC:ERHE ) were dismissed.
On April 5, the SEC reported a control deficiency and said it had completed a review of the matter. According to a June 2 statement, the investigation found "no evidence that the control deficiency resulted in harm to any respondent or affected the Commission’s adjudication in any proceeding."
Still, the SEC decided to dismiss all pending proceedings related to the control deficiency to preserve its resources.
"In doing so, we take no view on the merits of Enforcement’s allegations and claims or any defenses raised by the respondents, including the extent to which statutes, Commission Rules, and other precedent would be determinative or relevant to those allegations, claims, or defenses, the SEC said in the order.
The SEC also said : "We deeply regret that the agency’s internal systems lacked sufficient safeguards surrounding access to Adjudication memoranda, and we are continuing our work to ensure that, going forward, work product from the Adjudication staff is appropriately safeguarded."
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For further details see:
SEC dismisses some proceedings after completing enforcement/adjudication review