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(Article from Registered Funds Regulatory Update, July 2026)

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The SEC recently announced the creation of a new Retail Fraud Working Group within the Division of Enforcement. The Working Group is expected to draw on personnel and resources from across the Commission to investigate and pursue fraud and other misconduct involving retail investors. The SEC identified several categories of conduct within the Working Group’s remit, including offering fraud, pump-and-dump activity, market manipulation, and breaches of duty-of-care by investment advisers and broker-dealers. The announcement also stated that, in coordination with the SEC’s Office of Investor Education and Assistance, the Working Group will engage in educational outreach to retail investors.

SEC Chair Atkins described the initiative as reflecting the Commission’s commitment to protecting investors from fraud and as “a return to the core values and principles of the enforcement program.” David Woodcock, Director of the SEC’s Division of Enforcement, similarly emphasized that the Working Group would focus on generating cases, coordinating with other regulators, and using technology-driven detection methods. The Retail Fraud Working Group will be led by the SEC Division of Enforcement’s Deputy Director (West) and Assistance Director of the Asset Management Unit.

SEC Press Release, SEC Forms New Retail Fraud Working Group (July 7, 2026), available at: https://www.sec.gov/newsroom/press-releases/2026-63-sec-forms-new-retail-fraud-working-group.