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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.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.