During the “Directors Panel” at the Securities Enforcement Forum West, Jina Choi discussed voluntary self-disclosure policies with the Securities Exchange Commission (SEC).
Jina, who previously served as a SEC regional director in San Francisco, said she has seen skepticism about “what the actual benefit” is of some cooperation and remediation efforts. Even when a company isn’t hit with a financial penalty, charges can create other extraneous issues, such as making raising capital more difficult, she said.
The civil monetary penalty seems to be the main tool leveraged by the SEC, but another tool could actually be bringing a case or not, Jina said. “Are you looking for that case where they want to make a statement about how you conduct yourself? Can we hold out hope?”