- in United States
- with readers working within the Basic Industries industries
On February 11, 2026, at the 56th Annual Securities Regulation Seminar in Los Angeles, Margaret Ryan delivered her first public remarks as Director of the Division of Enforcement at the U.S. Securities and Exchange Commission (SEC or the Commission). Director Ryan opened her remarks by explaining that she would be guided by principles she applied as a U.S. Marine, a law clerk to Supreme Court Justice Clarence Thomas, and a judge on the U.S. Court of Appeals for the Armed Forces—"integrity, honor, fidelity to the law, and an unwavering commitment to the fair and judicious use of the formidable power and resources the federal government has entrusted to me." Adding a bit of levity, she also quoted Spiderman: "with great power comes great responsibility."
Here are our key takeaways from Director Ryan's remarks:
Fairness and Transparency in Investigations
Director Ryan reaffirmed that the "Wells" process remains central to enforcement because it promotes transparency, adversarial testing of theories, and informed decision-making before the enforcement staff recommends charges to the Commission. She underscored that meaningful engagement at the Wells stage, before formal action is taken, can influence both staff recommendations and Commission consideration. At the same time, she cautioned that defense counsel should not "mistake fairness for weakness," explaining that delay and gamesmanship by parties will not be looked upon favorably. Echoing recent U.S. Department of Justice white collar guidance, Director Ryan pronounced that the Enforcement Division will move matters toward resolution within reasonable timeframes.
Back to the Basics: Fraud and Market Integrity
Director Ryan emphasized that the Enforcement Division will prioritize quality over quantity, rejecting a numbers-driven approach to enforcement. She explained how the Enforcement Division will focus on cases that advance the SEC's core mission of protecting investors and maintaining fair, orderly, and efficient markets—as opposed to compliance matters, such as books and records and accounting controls. As examples, she cited traditional enforcement areas such as retail investor fraud, insider trading, accounting fraud, and market manipulation that result in investor losses.
Calibrating the Approach to Non-Fraud Violations
Director Ryan also addressed violations of federal securities laws that may not involve fraud but nonetheless create investor harm or market risk, such as broker-dealer or investment advisor policy and procedure breakdowns that improperly impact investor fees. She signaled openness to thoughtful, proportionate resolutions that prioritize remediation and strengthened compliance frameworks, reflecting a measured, risk-based approach in appropriate cases. This may mean lower penalties and fewer monitorships, as we've already seen under SEC Chairman Paul Atkins, and more investigations resolved without enforcement actions.
Looking Forward
In light of Director Ryan's remarks, market participants should expect continued strong enforcement in traditional fraud areas; increased emphasis on efficient investigations and timely resolution; serious consideration of Wells advocacy; and continued scrutiny of compliance failures that create investor risk, even absent fraud.
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