Businesses today must navigate an intricate web of policies, regulations, and enforcement actions that demand not only vigilance but a proactive stance toward transparency and cooperation.
Looking back at 2024, partners Ben Kingsley and Chris Steskal highlighted the U.S. regulatory enforcement priorities that they expect to carry into 2025 in their recent CLE, “Update on Government Enforcement Developments in 2024 and What to Expect in 2025.”
Stay on top of regulatory compliance priorities by reading their takeaways:
- Compliance programs and self-reporting continue to be key. The policies of the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) strongly encourage companies to implement effective compliance programs and to promptly self-report any instances of misconduct. As we move into 2025, these policies are expected to remain a priority. Companies can obtain cooperation credit if they act quickly, but risk losing that credit if they fail to report an incident within 120 days.
- Expect increased attention on individual misconduct, and a decrease in corporate enforcement action. While fewer corporate enforcement cases are expected, the new administration may offer leniency to companies that self-report and cooperate with authorities, making it important for businesses to remain proactive in their compliance efforts.
- Continued focus on traditional fraud, insider trading, healthcare, and cryptocurrency enforcement. While some regulatory-style enforcement may decrease, the government is expected to maintain a strong focus on prosecuting individual misconduct in areas like insider trading, securities fraud, and healthcare fraud.
- China remains a focal point for Foreign Corrupt Practices Act (FCPA) enforcement, particularly given its prominence in 2024 bribery cases. However, the ongoing lack of cooperation between the U.S. and China complicates efforts for companies trying to navigate potential FCPA issues in the region. Companies operating in China must be proactive in their FCPA compliance efforts, as the lack of U.S.-China cooperation makes it difficult to get ahead of potential issues.
- AI and cybersecurity practices are under heightened scrutiny. Regulators are actively enforcing rules around the use of AI, focusing on companies that make misleading claims or use AI deceptively. In 2025, we expect a continued focus on AI and cybersecurity enforcement, as regulators will be closely monitoring companies' cyber incident reporting and controls to protect investors and consumers from deceptive practices and data breaches.
Learn more about Fenwick’s securities litigation and regulatory capabilities, or register to watch any of our 2025 CLE webinars on-demand (self-study credit available).