In Hedge Fund Law Report, Dan O'Connor Discusses SEC Chair's Call for Broader Use of Wells Process

In a recent article in Hedge Fund Law Report, Daniel O'Connor, co-head of Ropes & Gray’s securities and futures enforcement practice, discusses SEC Chair Paul Atkins' recent call for broader use of the Wells process—the mechanism through which the SEC informs potential respondents of planned charges and allows them to present their side before enforcement action is taken.

Dan emphasizes the practical benefits for white-collar defense lawyers of understanding the SEC staff's actual interpretation of a matter—rather than a speculative version that may or may not reflect the regulator's position. "When we talk to clients, we're at interpretation 3.0. We're not at 2.0 anymore. Often, the case turns on the question: Is the SEC's interpretation of the LP agreement correct, or is the one that we've generally been sharing with our clients correct?" he explains.

Dan welcomes Atkins' proposed changes, including extending the submission window from two to four weeks. “If you're going to take that much time, then give us the time to have a reasonable conversation, which is one of many reasons Chair Atkins' change is welcome,” he notes.