{"id":5285,"date":"2012-04-16T00:00:00","date_gmt":"2012-04-16T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2012\/04\/sec_chairman_says_commission_s_1"},"modified":"2022-03-09T16:16:23","modified_gmt":"2022-03-09T22:16:23","slug":"sec-chairman-says-commission-s-1","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/sec-chairman-says-commission-s-1\/","title":{"rendered":"SEC Chairman Says Commission Shouldn\u2019t Impose Industry-Wide Bars On Offenders that Committed Misconduct Before Dodd-Frank Statute\u2019s Enactment"},"content":{"rendered":"\n<p>Speaking at the Rocky Mountain Securities Conference in Colorado a few days ago, Securities and Exchange Commission Chairman Daniel Gallagher said that the imposition of an industry-wide bar, which is authorized under Section 925 of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, shouldn\u2019t be applied to misconduct that happened before the financial reform statute was enacted. He talked about how many of the cases that have been brought to the agency for consideration under Section 925 involve \u201cpre-enactment\u201d conduct. <\/p>\n<p>Gallagher said this raised the question of \u201cbasic fairness.\u201d He believes that imposing an industry bar on conduct that took place before the legislation was passed is unfair. He said that choosing not to apply the Dodd-Frank provision to \u201cpre-enactment\u201d conduct would show that the SEC is here to not just prevent bad behavior and protect investors and markets, but also to \u201cafford procedural fairness\u201d so that any SEC enforcement action that a party is subject to is \u201clegitimate.\u201d He noted that while there are many defendants that undoubtedly deserve to have the SEC enforce actions against them, there should be limits, such as not subjecting them to sanctions that didn\u2019t exist at the time that their conduct occurred. During his speech, Gallagher was clear to note that the views he is expressing are his alone and not the SEC\u2019s.  <\/p>\n<p>Commenting on Gallagher\u2019s statements, Institutional Investment Fraud Attorney William Shepherd said, \u201cWhen assessing past behavior in the securities markets and whether certain sanctions against wrongdoers is or is not appropriate, does Wall Street really want to rely on this standard: \u2018we face a question of basic fairness?\u2019\u201d <\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/sec-chairman-says-commission-s-1\/\"  title=\"Continue Reading SEC Chairman Says Commission Shouldn\u2019t Impose Industry-Wide Bars On Offenders that Committed Misconduct Before Dodd-Frank Statute\u2019s Enactment\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Speaking at the Rocky Mountain Securities Conference in Colorado a few days ago, Securities and Exchange Commission Chairman Daniel Gallagher said that the imposition of an industry-wide bar, which is authorized under Section 925 of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, shouldn\u2019t be applied to misconduct that happened before the financial [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3960,3760,3761],"tags":[],"class_list":["post-5285","post","type-post","status-publish","format-standard","hentry","category-doddfrank-wall-street-reform-a","category-sec-enforcement","category-securities-and-exchange-commis"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>SEC Chairman Says Commission Shouldn\u2019t Impose Industry-Wide Bars On Offenders that Committed Misconduct Before Dodd-Frank Statute\u2019s Enactment &#8212; Investor Lawyers Blog &#8212; April 16, 2012<\/title>\n<meta name=\"description\" content=\"Speaking at the Rocky Mountain Securities Conference in Colorado a few days ago, Securities and Exchange Commission Chairman Daniel Gallagher said that &#8212; April 16, 2012\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/sec-chairman-says-commission-s-1\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"SEC Chairman Says Commission Shouldn\u2019t Impose Industry-Wide Bars On Offenders that Committed Misconduct Before Dodd-Frank Statute\u2019s Enactment &#8212; Investor Lawyers Blog &#8212; April 16, 2012\" \/>\n<meta name=\"twitter:description\" content=\"Speaking at the Rocky Mountain Securities Conference in Colorado a few days ago, Securities and Exchange Commission Chairman Daniel Gallagher said that &#8212; April 16, 2012\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"SEC Chairman Says Commission Shouldn\u2019t Impose Industry-Wide Bars On Offenders that Committed Misconduct Before Dodd-Frank Statute\u2019s Enactment &#8212; Investor Lawyers Blog &#8212; April 16, 2012","description":"Speaking at the Rocky Mountain Securities Conference in Colorado a few days ago, Securities and Exchange Commission Chairman Daniel Gallagher said that &#8212; April 16, 2012","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/sec-chairman-says-commission-s-1\/","twitter_card":"summary_large_image","twitter_title":"SEC Chairman Says Commission Shouldn\u2019t Impose Industry-Wide Bars On Offenders that Committed Misconduct Before Dodd-Frank Statute\u2019s Enactment &#8212; 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