In a toughened regulatory environment, marked by fundamental changes in the SEC's style and approach when conducting inquiries, Willkie Farr & Gallagher has expanded its regulatory practice with the hiring of a partner from a competitor.
James Anderson, who was previously chair of the investment management practice at WilmerHale, is now a partner in Willkie’s Washington office. Anderson is also a former attorney in the Office of Investment Company Regulation of the Division of Investment Management at the SEC. He has advised hedge funds, mutual funds, broker-dealers, banks, and investment advisors on deals and compliance matters for more than 20 years. He has particular expertise when it comes to protecting clients’ interests as they undergo inquiries and examinations by the SEC. In an exclusive interview with IFLR1000, Anderson identified a number of conspicuous changes in the way the SEC has operated in recent months.
“From my perspective, the increased influence of the enforcement staff is manifesting itself in two ways. One, the examination process is increasingly influenced by the enforcement staff who regularly participate in routine examinations, and they are monitoring closely what’s happening in those examinations. The process has gone from the examination staff completing an examination, formulating their views, and then making a formal referral to the enforcement staff, to something quite different. Now the enforcement staff is involved in examinations earlier on, and they may direct the examination, look at exam results before they’re complete, and instruct the examination staff to look for and develop cases they may want to bring,” Anderson said.
Overall the SEC’s trial attorneys and investigative staff are now far more engaged far earlier in preparing cases for trial.
“What used to be an objective investigation, especially once the trial staff gets involved, turns much more into them developing the case they want to prove if they pursue the case at trial. It’s a difference in perspective that influences how the staff thinks about cases and conducts investigations. It seems like the staff is trying to get an admission and develop a case as opposed to conducting more objective fact-finding. It’s a different way of conducting investigations,” Anderson continued.
In October, Willkie hired James Burns, a former deputy director of the SEC’s Division of Trading and Markets, as a partner in its asset management practice.