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The Security and Exchange Commission says its 2022 fiscal year ended with a new record of money recovered through various enforcement actions, including admissions of violations.

In total, the commission filed 760 enforcement actions in fiscal year 2022, which ended September 30. The total was 9% higher than the prior year, according to the SEC.

Of the enforcement actions, 462 were new or stand-alone actions, an increase of 6.5% from the previous year, according to the regulator.

As a result, the SEC ordered $6.44 billion in civil penalties, disgorgement and prejudgment interest in fiscal year 2022, compared to $3.85 billion in fiscal year 2021 – an increase of 67 % – and “the most recorded in the history of the SEC”, the commission says.

Civil penalties hit a record $4.19 billion, but reimbursement fell 6% from fiscal 2021 to $2.25 billion, according to the regulator.

Gurbir Grewaldirector of the SEC’s Enforcement Division, said in a press release accompanying the commission’s report that the SEC wanted the penalties to be significant enough to be considered a deterrent rather than “the cost of to do business”.

He added that despite the records in fiscal 2022, “we don’t expect to break those records and set new ones every year because we expect behaviors to change.”

“We are awaiting compliance,” he added in the statement.

The commission’s report also focused on enforcement actions in which the defendants admitted their violations. He took note of a settlement, in the amount of $1.235 billion, of an action against JP Morgan15 other brokers and an investment adviser for failures in monitoring employees’ electronic communications, and he also noted the billion dollars paid by Allianz Global Investors on concealing the downside risks of an options trading strategy.

In October of last year, Grewal promised that the SEC would, “in appropriate circumstances, require admissions where increased liability and acceptance of liability is in the public interest.”

In its report released on Tuesday, the regulator also said it had involved at least one defendant or individual defendant in more than two-thirds of standalone enforcement actions in fiscal 2022 in a bid to ensure accountability. individual.

Geraldine L. Melton