The U.S. Securities and Exchange Commission (SEC) has reportedly announced internally a major reorganization of its enforcement and exams divisions. This restructuring, effective April 9, 2025, was detailed in a staff memo from acting SEC Chairman Mark Uyeda that was seen and reported by Reuters. According to Reuters, an SEC spokesperson confirmed the changes, stating that they are “intended to improve efficiency, management, and oversight of the Divisions.”

Key Changes in the Reorganization

According to the memo, the enforcement staff will now report to new deputy directors based on geographic regions — West, Northeast, and Southeast — as well as a deputy director for specialized units. As of now, the SEC has one deputy director for the enforcement division, with 10 Regional Offices across the country where staff report to a director of each office.

Additionally, exam staff in the Regional Offices will report to new associate directors, with the apparent goal to streamline the reporting structure and address management challenges. Chairman Uyeda highlighted that the current structure, with over 40 direct reports to the enforcement director, is unsustainable.

Reasons Behind the Reorganization

The reorganization comes amid a period of significant change and challenges for the SEC. The agency is experiencing an exodus of staff, with hundreds accepting resignation offers as part of broader efforts by President Trump to downsize government agencies.

Chairman Uyeda cited management weaknesses as a contributing factor to the closure of the Salt Lake City, Utah office last year. This Regional Office was shut down following a high-profile failure in a case against a cryptocurrency firm, which led to a judge censuring the agency.

Impact on Regional Directors

Reuters had previously reported that the SEC was planning to eliminate the Regional Director position. This staff memo confirms the reassignment of nine regional directors into new roles. Despite these changes, the SEC’s Regional Offices will still have directors to handle operations.

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Photo of Jay Dubow Jay Dubow

Jay co-leads the firm’s Securities Investigations + Enforcement Practice Group. He focuses his practice on complex business litigation, with a special emphasis on defending against shareholder derivative and securities class action litigation. He also represents clients involved in investigations by the U.S. Securities…

Jay co-leads the firm’s Securities Investigations + Enforcement Practice Group. He focuses his practice on complex business litigation, with a special emphasis on defending against shareholder derivative and securities class action litigation. He also represents clients involved in investigations by the U.S. Securities and Exchange Commission (SEC), the Pennsylvania Department of Banking and Securities, and various self-regulatory organizations, including the Financial Industry Regulatory Authority, Inc. (FINRA). He also conducts internal investigations on behalf of clients. Such investigations have included allegations involving the Foreign Corrupt Practices Act (FCPA), whistle blower claims, financial fraud, and civil and criminal violations of various federal and state laws.

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Photo of Ghillaine Reid Ghillaine Reid

Ghillaine co-leads the Securities Investigations + Enforcement Practice Group at Troutman Pepper. She focuses her practice on government and securities regulatory investigations, financial services litigation, commercial litigation, and corporate compliance. Drawing on her experience in government service and private practice, Ghillaine regularly represents…

Ghillaine co-leads the Securities Investigations + Enforcement Practice Group at Troutman Pepper. She focuses her practice on government and securities regulatory investigations, financial services litigation, commercial litigation, and corporate compliance. Drawing on her experience in government service and private practice, Ghillaine regularly represents corporations and individuals in investigations conducted by the Securities & Exchange Commission, the Department of Justice, the Financial Industry Regulatory Authority, and other government and regulatory agencies. Ghillaine has successfully defended several high profile SEC investigations and enforcement proceedings involving a wide range of significant issues, including insider trading, accounting fraud, market manipulation, and broker-dealer sales practice violations. Prior to entering private practice, Ghillaine was a Branch Chief and Staff Attorney in the New York Regional Office of the Securities & Exchange Commission’s Division of Enforcement, where she investigated and litigated a wide range of securities enforcement matters.

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Photo of Casselle Smith Casselle Smith

Casselle counsels individuals and entities in high-stakes matters across a variety of sectors and routinely represents clients in connection with allegations of wrongdoing that have enterprise-wide implications and the potential for catastrophic reputational harm.

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