The Foley & Lardner LLP “Spotlight on Securities Enforcement” newsletter will periodically share summary updates regarding developments, appointments, and the like regarding the “Latest & Greatest” from the Securities and Exchange Commission (SEC). Along those lines, please see below.
SEC Names New Deputy Directors of the Division of Enforcement
On January 12, 2026, the SEC announced the appointment of Paul H. Tzur and David M. Morrell as Deputy Directors of its Division of Enforcement. Both leaders bring extensive experience in securities law, investigations, and litigation, and each rejoined the SEC from private practice. Mr. Tzur will oversee the agency’s enforcement program in the Chicago, Atlanta, and Miami regional offices. Mr. Morrell will oversee the agency’s enforcement program in the New York, Boston, and Philadelphia regional offices.
SEC Names Director of the Division of Examinations
On January 20, 2026, the SEC announced that Keith E. Cassidy has been appointed Director of the Division of Examinations. Mr. Cassidy has served as Acting Director since May 2024 and previously was the division’s Deputy Director, Acting Co‑Director, and National Associate Director of the Technology Controls Program. As discussed previously, the expectations for the Division of Examinations and its program may align more with its historical practices than how the Division of Enforcement will function under Chairman Atkins. This appointment of the Division of Examinations Acting Director is corroborative of that.
Commissioner Caroline Crenshaw Announces Her Departure From the SEC
On January 2, 2026, Commissioner Caroline A. Crenshaw announced her departure from the SEC after serving as a commissioner since 2020. During her tenure, Crenshaw championed investor protection initiatives, robust corporate disclosure standards, and measures to strengthen market transparency. Her exit leaves the SEC with three commissioners — Chairman Paul Atkins, Hester Peirce, and Mark Uyeda — and without a Democratic voice until a successor is appointed. This shift in composition could have implications for policy direction and enforcement and examination priorities, particularly in areas where votes have been closely divided along partisan or philosophical lines. Companies and firms should watch for potential changes in rulemaking momentum, enforcement focus, and examination initiatives.
SEC Issues Risk Alert on Marketing Rule Compliance
On December 16, 2025, the SEC’s Division of Examinations released a risk alert highlighting frequently observed deficiencies in investment advisers’ compliance with the Marketing Rule under the Investment Advisers Act of 1940. The alert underscores that many advisers are failing to adhere to key requirements, including the use of testimonials and endorsements without sufficient disclosures and the use of third-party ratings without complying to all requirements for use of third-party ratings. Examiners also found instances where firms did not have — or did not follow — adequate written policies and procedures designed to ensure Marketing Rule compliance. These findings suggest that firms should pay particular attention to both the content of their advertisements and the internal controls governing their use.
For market participants, the risk alert serves as a clear reminder that SEC examiners are actively reviewing marketing practices and will expect advisers to produce evidence supporting advertised performance and claims. Firms should promptly evaluate their marketing materials, disclosure language, recordkeeping processes, and compliance policies to ensure alignment with the rule’s requirements. Proactive steps — such as routine internal audits of marketing content, staff training on rule provisions, and documented substantiation for all claims — can help mitigate examination risk and avoid potential enforcement actions.
More broadly, this focused risk alert with specific guidance should be well received. The increased use of risk alerts — as opposed to regulation by enforcement — will be an area to continue to monitor. Along the lines of continuing transparent guidance in this area and more generally, on January 15, 2026, the SEC released two additional “FAQs” for marketing rule compliance regarding the use of model fees and testimonials and endorsements.
