WASHINGTON, Feb. 24, 2026 — The Division of Enforcement of the U.S. Securities and Exchange Commission announced significant updates to its Enforcement Manual, marking the first major revision since 2017, the agency said in Release No. 2026-20.
According to the SEC, the updates are intended to reinforce fairness, transparency, and efficiency in investigations conducted by the Division. The revisions are designed to enhance consistency and uniformity in enforcement practices and to create greater efficiencies in support of the Commission’s mission to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.
The Enforcement Manual serves as a public reference guide outlining internal procedures followed by the Division of Enforcement. The revised version replaces the prior edition issued in 2017.
Annual review commitment
The SEC stated that the Enforcement Manual will now undergo yearly reviews to ensure its procedures remain current, effective, and relevant. SEC Chairman Paul S. Atkins described the revision as an important and long-overdue step that builds on the Division’s commitment to transparency, fairness, and process while ensuring it remains able to fulfill its mission.
Margaret A. Ryan, Director of the Division of Enforcement, said the modified manual seeks to clarify and enhance public understanding of how the agency enforces the federal securities laws. She stated that the updates are intended to ensure greater uniformity, reflect the Division’s best practices, and improve staff effectiveness in carrying out enforcement responsibilities.
Wells process revisions
Among the key updates, the revised manual emphasizes open, informed, and thoughtful dialogue between SEC staff and potential respondents during the Wells process, the stage at which staff notify individuals or entities that enforcement charges are under consideration.
Under the updated guidance, recipients of a Wells notice will ordinarily receive four weeks to submit a Wells response. The manual also provides guidance regarding what makes a Wells submission most helpful to staff and the Commission. Wells meetings will generally be scheduled within four weeks of receipt of a submission and will include a member of senior leadership within the Division.
The SEC said the revised processes and timelines are intended to promote prompt resolution of investigations while allowing affected parties to learn more quickly whether staff will recommend closing an investigation or pursuing enforcement action.
Settlement and waiver consideration
The revised manual reflects that the Commission has restored its prior practice of permitting a settling party to request simultaneous consideration of an offer of settlement and any related request for a Commission waiver from automatic disqualifications and other collateral consequences resulting from the underlying enforcement action.
The SEC stated that allowing simultaneous consideration provides greater visibility into the collateral effects of a settlement, enhances transparency in Commission processes, and supports more efficient resolution of investigations.
Additional procedural updates
The revised Enforcement Manual also details the Division’s framework for evaluating cooperation, including the impact of cooperation on civil penalties. It includes changes intended to encourage more consistent internal collaboration, updates regarding the formal order process, an updated framework for referrals to criminal authorities, and other revisions intended to conform the manual to current best practices within the Division.
The Commission said the updates are designed to improve operational efficiency while maintaining procedural fairness in enforcement investigations.
