The changes aim to bring uniformity to the Wells process — the mechanism that gives potential enforcement targets advance notice before SEC staff recommends charges. Under the revised manual, recipients will ordinarily have four weeks to submit their Wells responses. Staff will then schedule Wells meetings within four weeks of receiving those submissions, with a member of senior Division leadership present.
"This is an important and long-overdue step that builds on the Division of Enforcement's commitment to transparency, fairness, and process while ensuring it remains able to fulfill its mission," SEC Chairman Paul S. Atkins said.
A separate procedural change allows parties to simultaneously request settlement consideration and Commission waivers from automatic disqualifications that can result from enforcement actions. The SEC said it recently restored this prior practice to provide "greater visibility into the collateral effects of a settlement" and drive efficiencies in resolving investigations.
The updated manual also details the Division's framework for evaluating cooperation in investigations, including how cooperation affects civil penalty calculations. Additional revisions address internal collaboration protocols, the formal order process, and the framework for making criminal referrals.
"Our updates to the Enforcement Manual ensure greater uniformity, reflect the Division's best practices, and improve our staff's ability to carry out the mission-critical work they do on behalf of investors," said Margaret A. Ryan, Director of the SEC's Division of Enforcement.
The agency said the manual will now undergo annual reviews.