In a recent FundFire article, Thompson Coburn partner Craig Haughton discussed the implications of the Securities and Exchange Commission (SEC) bringing fewer enforcement actions in 2026 than it did the previous year.
The drop in enforcement actions does not mean reduced scrutiny of advisors, private funds or broker-dealers, said Craig.
This year, the SEC revived its Retail Fraud Working Group to strengthen its ability to identify Ponzi schemes and other scams targeting everyday investors.
As investors continue to gain greater access to alternative investments, the SEC has also pursued enforcement actions against private fund managers, including Adit Ventures Management for allegedly defrauding investors in connection with investments in pre-initial public offering shares, including SpaceX and Klarna.
“The SEC expressly highlighted private fund misconduct and the pre-IPO secondary market, signaling that investor sophistication or accredited investor status will not insulate managers,” said Craig.
Read the full article here (registration required).
