by Andrew Goldstein, Elizabeth Skey, and Bingxin Wu
Left to right: Andrew Goldstein, Elizabeth Skey and Bingxin Wu (photos courtesy of Cooley LLP)
On March 10, 2025, the US Securities and Exchange Commission (SEC) adopted a final rule that will require a majority of the commissioners to agree before the SEC formally opens an investigation. For the past 15 years, that power had been delegated to the SEC’s director of enforcement – enabling SEC staff attorneys to issue subpoenas to companies and individuals without approval of the commission. The new rule will make it more difficult for staff to gain subpoena power, adding a bureaucratic hurdle that could slow investigations down. At the same time, however, Acting Deputy Director of the Division of Enforcement Antonia Apps has insisted publicly that the SEC is not “walking away” from enforcement, but will focus on core areas, such as fraud and deceptive market practices.