On October 22, SEC’s Office of Investor Education and Advocacy issued an Investor Bulletin to provide investors with a general overview of how the SEC’s Division of Enforcement conducts investigations.  The Bulletin states that the Division of Enforcement may be more likely to initiate an investigation if the matter:

• Requires immediate action to protect investors;
• Relates to conduct that may threaten the fairness or liquidity of the securities markets;
• Involves individuals with a history of misconduct;
• Involves a subject matter the SEC or Enforcement has designated as a priority;
• Fulfills a programmatic goal of the SEC and Enforcement; or
• Concerns an industry practice that may be widespread and should be addressed.  Bulletin.