SEC Reportedly Announces Major Reorganization of Enforcement and Exams Divisions

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.