Bridget Fitzpatrick Discusses Recent SEC Enforcement Manual Updates with Global Investigations Review  

Munger, Tolles & Olson Partner Bridget Fitzpatrick was quoted in Global Investigations Review’s article titled, “SEC Moves Towards Clarity, Uniformity with Updated Enforcement Manual.” The article discusses the first updates to the U.S. Securities and Exchange Commission’s (SEC) enforcement manual in nearly a decade. 

The revisions largely codify existing practices but introduce refinements that signal increased procedural clarity and senior oversight. Among the key changes, staff may now bypass the Wells process during parallel Justice Department investigations only if the criminal probe is “covert,” narrowing prior discretion and requiring closer coordination with prosecutors. The manual also requires formal orders of investigation to be approved directly by the commission, rather than delegated to enforcement staff. 

The update further standardizes aspects of the Wells process that previously varied across offices. Defendants are now given a default four-week period to respond to Wells notices, formalizing what had often been an informal practice. Staff are also encouraged to be more forthcoming in sharing investigative materials, and the manual reinforces the importance of the Seaboard Report’s framework for assessing cooperation by individuals and corporations.  

Bridget welcomed the updates, noting, “I don’t think the factors the SEC is considering for cooperation credit are a big change from the existing process, but I think there’s a transparency to putting it in the enforcement manual and modernizing and updating it.”  

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