Key Takeaways
- • SEC Enforcement Director David Woodcock described the Division of Enforcement's "recalibration" as a return to "basics" at the 12th annual Government Enforcement Institute on Sept. 18, prioritizing fraud and investor harm over technical violations.
- • The commission's stated priorities are conduct that harms investors, holding individual wrongdoers accountable, and returning money to harmed investors.
- • Covington partner Gerald Hodgkins argues the approach departs from decades of SEC enforcement that emphasized compliance with prophylactic requirements.
- • Enforcement activity has declined sharply under the new approach, according to the publisher summary of the Law360 piece.
- • The critique centers on whether the "back to basics" rationale is consistent with the agency's own enforcement history.
Summary
In a November 12, 2026 opinion piece published by Law360, Gerald Hodgkins of Covington examines the U.S. Securities and Exchange Commission's current enforcement posture and questions whether it reflects the agency's historical approach. The commentary is grounded in remarks made by SEC Enforcement Director David Woodcock at the 12th annual Government Enforcement Institute on Sept. 18, in which he described the Division of Enforcement as undergoing a "recalibration" intended to "refocus the enforcement program squarely on our mission and get back to basics."
According to Woodcock's remarks as quoted in the article, the commission is prioritizing cases involving "conduct that harms investors, holding individual wrongdoers accountable, and pursuing opportunities to return money to harmed investors." The publisher summary notes that this prioritization of fraud over technical violations has coincided with a drastic decline in enforcement activity.
Hodgkins contends that the philosophy deviates from decades of SEC enforcement, which has consistently promoted compliance with the agency's prophylactic requirements. The piece suggests that the historical record undercuts the rationale that the current approach is a return to fundamentals. The full article text is behind a Law360 subscription paywall, so this summary reflects the available excerpt and publisher description.
According to Woodcock's remarks as quoted in the article, the commission is prioritizing cases involving "conduct that harms investors, holding individual wrongdoers accountable, and pursuing opportunities to return money to harmed investors." The publisher summary notes that this prioritization of fraud over technical violations has coincided with a drastic decline in enforcement activity.
Hodgkins contends that the philosophy deviates from decades of SEC enforcement, which has consistently promoted compliance with the agency's prophylactic requirements. The piece suggests that the historical record undercuts the rationale that the current approach is a return to fundamentals. The full article text is behind a Law360 subscription paywall, so this summary reflects the available excerpt and publisher description.
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