Media Coverage
Source: Global Investigations Review
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Taina Rosa, Olivia Thomas
03.12.25
The Securities and Exchange Commission (SEC) recently published a final rule that strips authority from Senior Officers of the Division of Enforcement to issue formal orders of investigation. Moving forward, only the Commission itself can issue formal orders, which the staff needs to issue subpoenas for documents and testimony.
Pillsbury partner David Oliwenstein, who served as senior counsel in the SEC enforcement division, told Global Investigations Review that shifting investigative authority to the commission could place a “significant additional burden” on agency enforcement staff, since they will now have to prepare a memorandum explaining their rationale every time they seek formal authorization to investigate cases.
“This logistical hurdle, coupled with the possibility that the commission may reject formal order requests in certain types of cases, may have a chilling effect on the staff’s decision to subpoena authority,” he said, adding that the rule aligns with the Trump administration’s “general objective” of centralizing executive authority.
“To the extent the incoming chair has a direct line to the White House, I would expect the commission’s enforcement priorities to reflect those of the broader administration,” Oliwenstein said. “There is no reason to believe that the Commission will take a lax approach to policing fraud and other types of serious misconduct.”
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