American Securities Association Sues SEC Over Lack of Transparency
The American Securities Association (ASA) sued the Securities and Exchange Commission (SEC) for enforcement actions and failure to comply with the Freedom of Information Act. The case arises from the Commission’s regulatory actions in which it provided limited information to stakeholders. Currently, consumers are criticizing the Commission’s lack of disclosure in social media areas.
AMA Sue’s The SEC
In an application dated June 6, Securities Association It requests clarification from the Commission on previous regulatory actions it has sanctioned. The purpose of the action is to enforce compliance with the Freedom of Information Act, according to court documents.
In 2021, the SEC investigated the storage of broker-dealer communications on personal devices. Numerous documents were submitted to the financial regulator without any suspicion of breach of rules. This led the SEC to impose billions of dollars in fines without explanation of its decision-making process. The ASA has sought answers to how penalties are calculated and why defaulters are targeted.
They said the regulator had failed to comply with its obligations, citing previous SEC Commissioners’ comments on the penalty regime that viewed it as a tool to produce year-end statistics rather than to enhance market integrity and incentive. investor protection.
Regulator Mentions Exception
In response to the ASA’s request for details under the Freedom of Information Act, the SEC cited Exception 7(a), which concluded that the documents could reasonably interfere with ongoing enforcement proceedings. However, the ASA seeks documents for concluded transactions where the Commission cannot retain the requested information.
“And even if the SEC was able to withhold documents on these grounds, it fell woefully short of its high burden of justifying the withholding, as it offered nothing more than general, boilerplate statements for refusing to comply with the ASA’s requirements. FOIA “requests” they added.
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David is a financial news writer with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has a talent for keeping up with breaking news. Staying on top of trends, David is knowledgeable about regulations, partnerships, crypto assets, stocks, NFTs, etc. He reported in various fields such as. Away from the financial markets, David cycles and rides horses.
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