Compliance Solutions for Investment Advisers

SEC Decides Not to Bring Charges in 20% of Cases Where it Issues a Wells Notice

An independent study by the Wall Street Journal found that 20% of individuals and entities who received Wells Notices from the U.S. Securities and Exchange Commission (“SEC”) from 2010-12 did not end up facing any charges.   The percentage of those receiving Wells Notices that do not face charges is much higher than many outside experts believed.  This study shows that it is worthwhile for anyone receiving a Wells Notice to have counsel provide a robust Wells Response, because there is a good chance of persuading the SEC not to bring charges.

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