SECFinal Rule
Policy Statement: Agency Referrals for Potential Criminal Enforcement
Finance & Banking
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Summary
The SEC has issued guidance on when and how it will refer cases to law enforcement agencies for potential criminal prosecution of financial crimes and securities violations. This policy helps clarify the process for reporting serious wrongdoing to federal prosecutors and explains what types of violations are most likely to be referred for criminal charges.
Key Points
- 1The SEC established clearer procedures for deciding when securities violations are serious enough to refer to the Department of Justice and other law enforcement agencies for criminal prosecution
- 2The policy applies to major financial crimes like fraud, insider trading, ponzi schemes, and other intentional violations of securities laws
- 3This guidance helps investors and the public understand that serious financial crimes may result in both civil penalties from the SEC and criminal charges from prosecutors
- 4The policy emphasizes coordination between the SEC's civil investigators and criminal law enforcement to ensure major cases receive appropriate prosecution
- 5Companies and individuals involved in securities markets are affected because this clarifies the likelihood of criminal prosecution for serious violations, not just civil fines
Key Dates
Published
June 20, 2025
This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.
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