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ChairmansAddressatSECSpeaks2015

Chair Mary Jo White

Washington,D.C.
Feb.20,2015
Goodmorning.ItisgreattobebackatSECSpeakstogivetheChairmansAddressand
welcomingremarks.Thiseventisanexcellentopportunityforthepublictohearfromagency
staffaboutourworkoverthepastyearandwhatisinstorefor2015.
Byeverymeaningfulmeasure,2014wasayearofsignificantaccomplishmentacrossallofthe
agencysareasofresponsibility.Theyearwashighlightedbythecompletionofseveral
transformativerulemakings,includingnewpolicyreformstoaddressfaultsexposedduringthe
financialcrisisandinitiativestobetteraddressvulnerabilitiesintheresiliencyandintegrityof
ourmarkets.Itwasalsoanunprecedentedyearinenforcement,intermsofthenumberof
casesand,moreimportantly,theirsubjectmatter.Wemadeimportantstridesinourreview
andactionplansforoptimizingthestructureofourequityandfixedincomemarkets,enhancing
ourrisksupervisionoftheassetmanagementindustryandbolsteringtheeffectivenessofpublic
companydisclosure.Wealsosignificantlystrengthenedourexaminationcoverageofmarket
participants.But,asalways,wehavemoretodoandexpectaverybusy2015.
IwouldliketobeginbyrecognizingtheSECstaff,whichiscomprisedofsomeofthemost
talented,committed,andhighmindedpublicservantsingovernment.Theyarethelifebloodof
thisextraordinaryagencyandtheirexpertiseandunwaveringdedicationareessentialtothe
welfareofinvestors,thestrengthofourmarkets,andcompaniesseekingtoraisecapitaltofuel
oureconomy.
ItisoneofmymostwelcomeresponsibilitiesasChairtopubliclyrecognizetheirexceptional
workand,togetherwithmyfellowCommissioners,maketheSECarewardingworkplacewhere
thestaffaresupportedandrespected.WhenIarrivedattheSECinApril2013,thestaffsdeep
commitmenttoourmissionwasstrong,butemployeemorale,asmeasuredbytheFederal
EmployeeViewpointSurvey,hadbeenindeclineforsometime.[1]Employeesatisfactionand
engagementisoneofmymostimportantprioritiesandwehavetakenseveralstepstohelp
addressthoseissues.
Workingcollaborativelywithourunionandseniormanagement,weimplementedagencywide
programstoimproveemployeemorale.Weamongotherthingsestablishedjointlabor
managementforumsineachofficeanddivision,andlaunchedanAllInvestedinitiativeto
fosterengagementandcelebrateemployeeaccomplishments.Iampleasedtoreportthatthe
SECin2014experiencedthelargestimprovementinoveralljobsatisfactionofanymidsized
governmentagency.[2]Whilewerightlycelebratethisimprovement,Iremaindeeply
committedtosustainingourprogressandmakingtheSECanevenbetterplacetowork.

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TocontinuethegreattraditionofacknowledgingtheSECstaffintheaudience,wouldevery
currentSECemployeepleasestand.Iamhonoredtoworkwitheachofyouandcannotthank
youenoughforallyoudo.PleaseremainstandingasIaskeveryoneheretodaywhoever
workedattheSECtoalsostand.Weareabetter,strongeragencythankstoyourefforts
duringyourtimeattheCommission.Pleasetakealookaroundtheroomandrecognizethe
extraordinarypublicserviceofthosewhoarestandingwitharoundofapplause.
BeforeIgoon,IwouldliketopauseandpaytributetoapillarofourSECcommunitywhomwe
lostlastweekformerCommissionerHarveyGoldschmid.Harveydidsomuchtofurtherour
missionasaCommissioner,asourGeneralCounsel,asanadvisortoChairmanLevitt,and
throughhisworkafterleavingtheagency.Harveywasadedicatedpublicservantandadear
colleague.Wewillmisshimverymuch.
*****
Letmenowturntothebusinessathand,beginningwithsomeofthehighlightsofthepast
year.

Impactful Rulemaking

Protecting and Enhancing Critical Market Infrastructure

Aspartofourfocusonenhancingmarketintegrityandstability,weadoptedRegulation
SystemsComplianceandIntegrity(RegulationSCI),markinganhistoricshiftintheSECs
regulationofthetechnologyatthecoreoftodaysU.S.securitiesmarkets.[3]RegulationSCI
mandatescomprehensivenewcontrolstostrengthenkeytechnologicalsystems,promoting
moretransparency,resiliencyandaccountability.ThisisanongoingpriorityandIhave
directedthestafftostudy,in2015,whethertorecommendextendingsimilarrequirementsto
othermajormarketparticipantswhoseoperationscanhaveasignificantmarketimpactifthey
aredisrupted.

Addressing Risks Exposed by the Financial Crisis

In2014,wealsoadoptedanumberofcriticalreformstopromotefinancialstabilityforthe
protectionofinvestorsandtostrengthenourmarketsfollowingthefinancialcrisis,including
reformsrelatedtomoneymarketfunds,overthecounterderivatives,assetbackedsecurities
andcreditratingagencies.

Reforming the Fundamentals of Money Market Funds

U.S.moneymarketfunds,whichholdmorethan$3trillion,arecriticaltoinvestors,
corporations,municipalitiesandtheoveralleconomy.Thecrisissparkedimportantconcerns
abouttheoperationofmoneymarketfunds,particularlyintimesofstress.Followingan
extensiveandcarefulanalysis,theCommission,inJuly,adoptedfinalrulesthatwill
fundamentallychangethewaythesefundsoperate.[4]
Underthenewrules,institutionalprimemoneymarketfundswillberequiredtomaintaina
floatingnetassetvalue,resultingindailysharepricesthatfluctuateboardsofnon
governmentmoneymarketfundswillhavenewtoolstoaddressrunsonafundwiththeability
toimposeliquidityfeesorsuspendredemptionstemporarilyduringperiodsofstressandall
moneymarketfundswillbesubjecttoenhanceddiversification,disclosure,reportingandstress

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testingrequirements.Thiswasaverysignificantandimportantaccomplishmentfortheagency
andourstaffwillcontinuetocarefullymonitormarketadjustmentstothenewreformsasthey
arefullyimplementedin2016.

Addressing Blind Spots in Over-the-Counter Derivatives and Asset-Backed Securities

Lastyear,wealsoredoubledoureffortstoimplementacomprehensiveregulatoryframework
forsecuritybasedswapsinthepreviouslyunregulatedoverthecounterderivativesmarket,as
mandatedbyTitleVIIoftheDoddFrankAct.Wehavenowproposedalloftheserulesand,in
June,adoptedthethresholdrulesthatprovidethefoundationfortheregulatoryregimeover
theseuniquelycrossborderproducts.
WecontinuedourimplementationoftheTitleVIImandatesinearly2015withtheadoptionof
twosetsofrulestobringtransparencytothismarket.[5]Thesereformsestablishabroad
regulatorystructurefortheregistrationofsecuritybasedswapdatarepositories,whichwillbe
thecentralizedrecordkeepingfacilitiesthattheSECandothersecuritybasedswapdata
regulatorswillrelyonforcriticaloversightandwhichmarketparticipantswillrelyonforprice
transparency.Theserulesalsoestablishtheframeworkforthedetailedinformationthatmust
bereportedtothedatarepositoriesandfortheinformationthatmustbepubliclyreportedand
disseminatedforeachsecuritybasedswaptransaction.
TheCommissionin2014alsoadoptedfinalrulestofurtherreformtheassetbackedsecurities
marketswhereinvestorswereharmedduringthefinancialcrisisduetocriticalfailuresinthese
products.Toaddressthesedefects,theCommissionfinalizedrulestoenhancethedisclosure
requirementsforassetbackedsecuritiesandmakeiteasierforinvestorstogettheinformation
theyneedtomakeinformedinvestmentdecisions.TheCommission,togetherwithfellow
financialregulators,alsofinalizedrulestorequirecertainsecuritizerstoretaincreditriskto
morecloselyaligntheirincentiveswiththoseofinvestors.[6]

Enhancing the Governance and Accountability of Credit Rating Agencies

TheCommissionin2014alsoadoptedastrong,comprehensivepackageofreformsforthe
regulationandoversightofcreditratingagencies,implementingoveradozenrulemaking
requirementsundertheDoddFrankAct.[7]
Thesereformsincludenewrequirementstopromotegreateraccountabilityinthecreditratings
processbymandatingeffectiveinternalcontrolstructures,mitigatingpotentialconflictsof
interestbyrequiringamorecompleteseparationofthecreditanalysisfunctionfromsalesand
marketingactivities,andimprovingthequalityandtransparencyoftheratingsprocessby
requiringgreaterdisclosureofratingmethodologiesandperformance.

Advancing Other Critical Investor and Market Protections

Alongwiththesefinalizedreforms,wealsoproposedadditionalTitleVIIrequirements,
importantrulestoenhancetheoversightofclearingagencies,and,justlastweek,rules
mandatedbytheDoddFrankActtorequirecompaniestodisclosetheirhedgingpolicies.
Progressisalsobeingmadetoimplementtheconsolidatedaudittrail(CAT),whichwill
providecriticaldataformonitoringtheequitymarkets.CATwillcollecteveryorder,
cancellation,modification,andtradeexecutionforallexchangelistedequitiesandequity

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optionsacrossallU.S.markets.Itwillbeagamechangerformonitoringandoverseeingthe
market,andweareallanxiousforitscompletion.Butitisaverycomplexundertakingthat
mustbedonecarefullyandcorrectly.

Enforcement and Examination

Wealsohadaverystrongyearinenforcement.In2014,webroughtthehighestnumberof
casesinthehistoryoftheCommission,755,andobtainedover$4.1billioninmonetaryrelief
orderedalsoanagencyrecord.[8]Thequalityandbreadthofouractions,however,arethe
moremeaningfulmeasureofastrongandeffectiveenforcementprogram.Andlastyear,we
focusedoninnovative,highimpactcasesandpunishedanddeterredwrongdoersinawaythat
sentimportantmessagestothemarket,includingbyobtainingmoreadmissionstoachieve
heightenedaccountabilityandacceptanceofresponsibilityfromentitiesandindividuals.[9]

First-of-their-Kind Cases
In2014,wealsobroughtanumberoffirstoftheirkindcasesthatexpandedourenforcement
footprintcasesagainsthighfrequencytradingfirms[10]ourfirstactionsforafailuretohave
adequateriskcontrolsbeforeprovidingmarketaccesstocustomers[11]ourfirstcaseapplying
ourwhistleblowerantiretaliationauthority[12]ourfirstactionagainstaprivateequityfirm
relatingtoitsallocationoffeesandexpenses[13]ourfirstemergencyactiontohalta
fraudulentmunibondoffering[14]andourfirstactionagainstabrokerdealerforfailingto
havepoliciesandproceduresguardingagainstthemisuseofretailcustomersmaterialnon
publicinformation.[15]Wealsoissuedourlargesteverwhistleblowerawardover$30
million.[16]
Alongwiththesefirsts,theEnforcementDivisioncontinuedtofocusonotherimportantareas,
includingmarketstructure,brokerdealers,municipalsecurities,affinityfraud,financial
reporting,gatekeepers,insidertrading,andmicrocapfraud.Iwillmentionacoupleofcases,
buttheseareallareaswhereyoucanexpecttoseemoreactivityin2015.
Enforcementisfocusedoncasesinvolvingviolationswheremarketparticipantsfailtoprovidea
levelplayingfieldinthesecuritiesmarkets.Oneexampleisacasewebroughtlastmonth
againsttheoperatorofanalternativetradingsystemforviolationsrelatedtotheoperationand
marketingofitsdarkpool,obtainingourlargestpenaltyagainstanalternativetradingsystem.
[17]
Ourrenewedfocusonfinancialreportingandauditingfraudisalsostartingtobearfruit.We
experienceda40%jumpinfinancialreportingcaseslastyearandfiledseveralimportant
actionsinvolvingrevenuerecognition,[18]auditorindependence,[19]andfalseandmisleading
financialdisclosures.[20]Wealsoremaincloselyfocusedongatekeepers,havingrecently
broughttwocasesdealingwithSection5obligationsofbrokerdealers,[21]aswellasanumber
ofcasesagainstauditors,transferagentsandattorneys.[22]

Examinations
OurOfficeofComplianceInspectionsandExaminations(OCIE)wasalsoincrediblyproductive
lastyear,conductingover1,850registrantexaminationsa15%increasefrom2013.[23]A
keytoOCIEssuccesswasitscontinuedintegrationoftechnologyintoitsprogram.Atlast
yearsSECSpeaks,OCIEunveileditsNationalExamAnalyticsTool(NEAT)tobetterdetect
potentiallysuspiciousactivityinregistrantstradeblottersandmoreefficientlyidentifyrisks.

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Lastyear,NEATwasrolledouttoexaminersacrossthecountrytoenablethemtobroadly
canvasregistrantstradingactivitiesandthenstrategicallynarrowthescopeoftheir
examinationstoareasthatposethegreatestrisks.Ourexaminationstaffalsoundertooka
varietyofinitiativesin2014tobroadentheirreach,includingacybersecuritysweepofover
100registrantstoassesscyberpreparednesswithinthebrokerdealerandinvestmentadviser
communities.In2015,OCIEwillcontinuetofocusoncurrentandemerginghighpriorityareas
andwillfurtherenhanceitsuseofdataanalyticstoidentifyrisks.

Looking Ahead to Rulemaking in 2015

Lookingaheadinotherareasfor2015,wewillprioritizefundamentalreformscentraltothe
Commissionsmission,mostsignificantly,marketstructure,enhancingriskmonitoringofthe
assetmanagementindustry,andcapitalraisingforsmallerissuers.Wewillalsopressforward
onoureffortstocompleteourremainingmandatoryrulemakingsundertheDoddFrankAct,
whicharelargelyintheareaofderivativesandexecutivecompensation.Letmehighlightjust
threeofourcoreinitiativesfor2015.

Enhancing Market Structure

Thestaffhasbeenengagedinanongoingefforttocomprehensivelyreviewthefundamentalsof
ourcurrentmarketstructureanddevelopinitiativestoensurethatinvestorsandissuersare
beingoptimallyserved.Inparticular,asIhavepubliclydescribed,thestaffisdeveloping
recommendationstoenhancethetransparencyofalternativetradingsystemoperations,
expandinvestorunderstandingofbrokerroutingdecisions,addresstheregulatorystatusof
activeproprietarytraders,andmitigatemarketstabilityconcernsthroughatargetedanti
disruptivetradingrule.
Toaidourreview,theCommissionrecentlyannouncedtheformationoftheMarketStructure
AdvisoryCommittee.[24]Thisexpertgroupwillfocusonthestructureandoperationsofthe
U.S.equitymarketsandprovideavaluablemechanismfortheCommissiontoreceiveinputand
adviceconcerningmarketstructureissues.Throughtheseandotherempiricallydrivenefforts,
wewillcontinuetofocusonwaystoimprovetheexistingstructureofourequitymarkets.
Asforfixedincome,lastsummer,IcalledforpromptactionbyFINRAandtheMSRBtoimprove
thequalityandtransparencyofpricesreceivedbyinvestors.IcommendFINRAandtheMSRB
formakingsignificantstridessincetheninadvancingreformstoenhancebestexecution
requirementsandtoseekbetterdisclosuretocustomersofkeypricinginformation.[25]These
stepsarepartofabroaderefforttoenhancethepublicavailabilityofinformation,including
pretradeinformation,inthemassiveandincrediblyimportantfixedincomemarkets,which
areessentialtooureconomyandinfrastructure.[26]

Strengthening Asset Managers

Oneofthemostfundamental,andimportant,postcrisischangesforallfinancialregulatorshas
beenanemphasisonaddressingrisksthatcouldhaveasystemicimpactonthemarketsorthe
financialsystemasawhole.
FortheCommission,thisdoesnotmeaneliminatinginformedinvestmentrisk,whichunderlies
ourcapitalmarkets.But,ourpostcrisisfocusneedstoinclude,amongotherthings,particular
attentiontotheactivitiesofassetmanagers.AsIoutlinedinremarksinDecember,thestaff
hasbeendevelopingthreesetsofinitialrecommendationstoaddresstheincreasinglycomplex

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portfoliocompositionandoperationsoftodaysassetmanagementindustry,whichmanages
morethan$62trillionofassets.[27]Thefirstseekstomodernizeandenhancedatareporting
forbothfundsandinvestmentadvisers.Thesecondwouldrequireregisteredfundstohave
controlsinplacetomoreeffectivelyidentifyandmanagetherisksrelatedtothediverse
compositionoftheirportfolios,includingliquiditymanagementandtheuseofderivativesin
mutualfundsandETFs.Thethirdfocusesonplanningfortheimpactofmarketstresseventsor
whenanadviserisnolongerabletoserveitsclients.Overthecourseofthisyear,whichalso

marksthe75thanniversaryoftheSECsroleasthefederalregulatoroffundsandadvisers,the
Commissionandstaffwillconsidereachoftheseinitiativesandwewillbelookingtomarket
participantsfortheirviews.

Facilitating Capital Formation for Smaller Issuers

Athirdareaoffocusforthecomingyeariscapitalformationforsmallerissuers.Smaller
companiesareaprimaryengineofeconomicgrowthinthiscountryanditisimportantthatwe
lookforwaysthatourrulescanbeusedtohelpthesecompaniesthrive.Wewill,ofcourse,do
sowithouroverarchingmissiontoprotectinvestorsfirmlyinmind.
Thisyear,wewillbefocusedonimplementingthefinaltwomajormandatesoftheJOBSAct
RegulationA+andcrowdfundingbothveryimportantandcomplexrulemakings.Thesetwo
exemptionsfromtheregistrationrequirementsoftheSecuritiesActcanpotentiallyprovide
excitingnewwaysforsmallercompaniestoraisecapital.
Ispokelastyearaboutourfocusonapossiblepilotprogramtowidenticksizesforthestocks
ofsmallercompaniestoprovidedatatoinformpossiblewaystoenhancemarketqualityforthe
stocksofthesecompanies.InNovember,IwaspleasedthattheCommissionpublishedfor
publiccommenttheSROsplanforthepilot.[28]ThecommentperiodclosedinlateDecember
andthestaffisnowreviewingthecommentsandpreparingtomakearecommendationtothe
Commission.Thereareotherideaswewillbeconsidering,includingencouragingthe
developmentofventureexchangesasvenuestoprovidemoreliquidityforthesecuritiesof
smallercompanies.
Letmestophere.Obviously,Iquicklycoveredjustthreeofthecorepolicyareasthatwewill
focusoninthecomingyear.Thereareanumberofotherimportantprioritiesthatwilloccupy
usin2015,includingconsiderationofwhethertoadoptauniformfiduciarydutyforbroker
dealers,andwewillalsobeadvancingotherinitiativesacrosstheagency,includingour
disclosureeffectivenessandaccreditedinvestordefinitionreviewsbeingledbyourDivisionof
CorporationFinance,exploringwaystoincreaseourexamcoverageofinvestmentadvisers,
enhancementstoourbrokerdealerfinancialresponsibilityrules,andupdatingourregulatory
regimefortransferagents.

Conclusion
IhavetriedtogiveyouasnapshotofthestateofaffairsattheSECandatleastaflavorof
whattoexpectfromusin2015.Ourtalentedstaffwillprovidemoredetailsoverthenexttwo
days.Asyoutakeitallin,pleaseusethisopportunitytoaskquestionsandshareideas
becausethatinputhelpsustocarryoutourmissioninasmarter,fairerandmoreeffective
way.
Thankyoufortakingthetimetobehereandenjoytheconference.

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[1]SeeAgencyReport:SecuritiesandExchangeCommission,TheBestPlacestoWorkinthe
FederalGovernment(2014),availableat
http://bestplacestowork.org/BPTW/rankings/detail/SE00.
[2]SeeBestPlacestoWorkAgencyRankings,TheBestPlacestoWorkintheFederal
Government,availableathttp://bestplacestowork.org/BPTW/rankings/overall/mid.
[3]SeeReleaseNo.3473639,RegulationSystemsComplianceandIntegrity(November19,
2014),availableathttp://www.sec.gov/rules/final/2014/3473639.pdf.
[4]SeeReleaseNo.339616,MoneyMarketFundReformAmendmentstoFormPF(July23,
2014),availableathttp://www.sec.gov/rules/final/2014/339616.pdf.
[5]SeeReleaseNo.3474244,RegulationSBSRReportingandDisseminationofSecurity
BasedSwapInformation(Feb.11,2015),availableathttp://www.sec.gov/rules/final/2015/34
74244.pdfReleaseNo.3474246,SecurityBasedSwapDataRepositoryRegistration,Duties,
andCorePrinciples(Feb.11,2015),availableathttp://www.sec.gov/rules/final/2015/34
74246.pdf.
[6]SeeReleaseNo.339638,AssetBackedSecuritiesDisclosureandRegistration(Sept.4,
2014),availableathttp://www.sec.gov/rules/final/2014/339638.pdfReleaseNo.3473407,
CreditRiskRetention(Oct.22,2014),availableathttp://www.sec.gov/rules/final/2014/34
73407.pdf.
[7]SeeReleaseNo.3472936,NationallyRecognizedStatisticalRatingOrganizations(Aug.27,
2014),availableathttp://www.sec.gov/rules/final/2014/3472936.pdf.
[8]Reflectstotalsforthefiscalyear,notthecalendaryear
[9]See,e.g.,PressReleaseNo.201514,SECChargesOppenheimerwithSecuritiesLaw
ViolationsRelatedtoImproperPennyStockSales(Jan.27,2015),availableat
http://www.sec.gov/news/pressrelease/201514.htmlPressReleaseNo.2014172Bankof
AmericaAdmitsDisclosureFailurestoSettleSECCharges(Aug.21,2014),availableat
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370542719632.
[10]SeePressReleaseNo.2014199,SECChargesN.Y.BasedHighFrequencyTradingFirm
WithViolatingNetCapitalRuleForBrokerDealers(Sept.17,2014),availableat
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370542972403PressRelease
No.2014229,SECChargesNewYorkBasedHighFrequencyTradingFirmWithFraudulent
TradingtoManipulateClosingPrices(Oct.16,2014),availableat
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370543184457.
[11]Rule15c35.SeePressReleaseNo.2014263,WedbushSecuritiesandTwoOfficialAgree
toSettleSECCase(Nov.20,2014),availableat
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370543504806PressRelease
No.2013222,SECChargesKnightCapitalWithViolationsofMarketAccessRule(Oct.16,
2013),availableat
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370539879795.

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[12]SeePressReleaseNo.2014118,SECChargesHedgeFundAdviserWithConducting
ConflictedTransactionsandRetaliatingAgainstWhistleblower(June16,2014),availableat
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370542096307.
[13]SeePressReleaseNo,201441,SECAnnouncesChargesAgainstArizonaBasedPrivate
EquityFundManagerinExpenseMisallocationScheme(Feb.25,2014),availableat
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370540849548.
[14]SeePressReleaseNo.2014122,SECObtainsCourtOrdertoHaltFraudulentBond
OfferingbyCityofHarvey,IL(June25,2014),availableat
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370542163027
[15]SeePressReleaseNo.2014207,WellsFargoAdvisorsAdmitsFailingtoMaintainControls
andProducingAlteredDocument,AgreestoPay$5MillionPenalty(Sept.22,2014),available
athttp://www.sec.gov/News/PressRelease/Detail/PressRelease/1370543012047.
[16]SeePressReleaseNo.2014206,SECannouncesLargestEverWhistleblowerAward(Sept.
22,2014),availableat
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370543011290.
[17]SeePressReleaseNo.20157,SECChargesUBSSubsidiaryWithDisclosureViolationsand
OtherRegulatoryfailuresinOperatingDarkPool(Jan.15,2015),availableat
http://www.sec.gov/news/pressrelease/20157.html
[18]SeePressReleaseNo.201447,SECChargesAnimalFeedCompanyandTopExecutives
inChinaandU.S.WithAccountingFraud(March11,2014),availableat
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370541102314PressRelease
No.201445,SECChargesFiveExecutivesandFinanceProfessionalsBehindFraudulentBond
OfferingbyInternationalLawFirm(March6,2014),availableat
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370540889964
[19]SeePressReleaseNo.2014272,SECSanctionsEightAuditFirmsforViolatingAuditor
IndependenceRules(Dec.8,2014),availableat
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370543608588.
[20]SeePressReleaseNo.2014269,SECAnnouncesFraudChargesAgainstTwoExecutives
inSchemeInvolvingFakeOccupantsatSeniorResidences(Dec.3,2014),availableat
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370543576909PressRelease
No.201469,SECChargesCVSWithMisleadingInvestorsandCommittingAccounting
Violations(April8,2014),availableat
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370541437806PressRelease
No.20144SECChargesDiamondFoodsandTwoFormerExecutivesfollowingAccounting
SchemetoBoostEarningsGrowth(Jan.9,2014),availableat
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370540598296.
[21]SeePressReleaseNo.2014225,SECChargesCurrentandFormerE*TRADESubsidiaries
WithImproperlySellingPennyStocksThroughUnregisteredOfferings(Oct.9,2014),available
athttp://www.sec.gov/News/PressRelease/Detail/PressRelease/1370543133526PressRelease
No.201514,SECChargesOppenheimerWithSecuritiesLawViolationRelatedtoImproper
PennyStockSales(Jan.27,2015),availableathttp://www.sec.gov/news/pressrelease/2015
14.html.

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[22]Seee.g.,PressReleaseNo.201525,SECImposesSanctionsAgainstChinaBased
MembersofBigFourAccountingNetworksforRefusingtoProduceDocuments(Feb.6,2015),
availableathttp://www.sec.gov/news/pressrelease/201525.htmlPressReleaseNo.20159,
SECAnnouncesChargesAgainstAttorneysandAuditorsinMicrocapSchemeInvolving
PurportedMiningCompanies(Jan.15,2015),availableat
http://www.sec.gov/news/pressrelease/20159.htmlPressReleaseNo.2014284,SEC
ImposesSanctionsAgainstHongKongBasedFirmandTwoAccountantsforAuditFailures
(Dec.17,2014),availableathttp://www.sec.gov/news/pressrelease/2014284.htmPress
ReleaseNo.2014213,SECChargesTwoFloridaBasedAttorneysforrilesinOfferingFraudby
TransferAgent(Sept.23,2014),availableat
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370543024653PressRelease
No.2014184,SECChargesL.A.BasedImmigrationAttorneysWithDefraudingInvestors
SeekingU.S.Residency(Sept.3,2014),availableat
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370542843452PressRelease
No.2014146,SECChargesFloridaBasedTransferAgentandOwnerwithDefraudingInvestors
(July24,2014),availableat
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370542364725PressRelease
No.2014107,SECObtainsAssetFreezetoHaltFraudatIllinoisBasedTransferAgent(May
28,2014),availableat
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370541926263PressRelease
No.201471,SECChargesLasVegasBasedTransferAgentWithDisclosureFailuresin
RegistrationForms(April8,2014),availableat
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370541443215.
[23]Reflectstotalsfromfiscalyear,notthecalendaryear.SeeSECAgencyFinancialReportFY
2014,p.29,availableathttp://www.sec.gov/about/secpar/secafr2014.pdfSECFY20102014
AnnualBudgetReports,availableathttp://www.sec.gov/about/budgetreports.shtml.
[24]SeePressReleaseNo.20155SECAnnouncesMembersofNewEquityMarketStructure
AdvisoryCommittee(Jan,13,2015),availableathttp://www.sec.gov/news/pressrelease/2015
5.html.
[25]SeeMSRBNotice20142,RequestforCommentonDraftBestExecutionRule,Including
ExceptionforTransactionswithSophisticatedMunicipalMarketProfessionals(Feb.19,2014),
availableathttp://www.msrb.org/~/media/Files/RegulatoryNotices/RFCs/201402.ashx?n=1
FINRANotice201452,FINRARequestsCommentonaProposedRuleRequiringConfirmation
DisclosureofPricingInformationinFixedIncomeSecuritiesTransactions(Nov.17,2014),
availableat
http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p601685.pdf.
[26]SeeSECReportontheMunicipalSecuritiesMarketat5(Jul.31,2012)availableat
http://www.sec.gov/news/studies/2012/munireport073112.pdf(informationconcerningthe
totalnumberofmunicipalsecuritiesandcorporatebondsoutstanding)FederalReserveBoard,
FlowofFundsAccountsoftheU.S.atTablesL.211(ThirdQuarter2014)(availableat
http://www.federalreserve.gov/releases/z1/current/z1.pdf)(providingmarketcapitalization
numbersforequities,corporatebonds,andmunicipalsecurities).

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[27]ThisnumberreflectsregulatoryassetsundermanagementofSECregisteredinvestment
advisersselfreportedonFormADV,andisbasedonInvestmentAdviserRegistration
Depository(IARD)dataasofFeb.1,2015.Featuresofthedataresultinthedoublecounting
ofsomeassets.
[28]SeeReleaseNo.3473511,NoticeofFilingofProposedNationalMarketSystemPlanto
ImplementaTickSizePilotProgramOnaOneYearPilotBasis(Nov.3,2014),availableat
http://www.sec.gov/rules/sro/nms/2014/3473511.pdf.

Lastmodified:Feb.20,2015

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