Quick Overview

  • The U.S. Securities and Exchange Commission (SEC) announced on Wednesday that James J. Moloney, a partner at the law firm Gibson Dunn, has been appointed as the Director of the agency's Division of Corporation Finance, effective next month.
  • The SEC stated that Cicely LaMothe, who previously served as Acting Director, will return to her role as Deputy Director of the division.
  • SEC Chairman Paul Atkins said in a press release: "Jim is a seasoned professional with deep knowledge of all aspects of corporate governance and disclosure. He brings decades of experience to our regulatory efforts, with a focus on supporting innovation and promoting capital formation."

In-Depth Analysis

According to the SEC's website, the Division of Corporation Finance is responsible for ensuring that investors receive the information needed to make informed investment and voting decisions, including information related to a company's initial public offering of securities and subsequent ongoing disclosure periods.

The leadership change at the division comes as the SEC, under President Donald Trump, adjusts its priorities and adopts a less aggressive stance in areas such as cryptocurrency regulation.

Moloney previously served at the SEC for six years before joining Gibson Dunn, where he worked for 25 years, rising from a corporate associate to an equity partner.

He has advised clients on matters such as corporate governance, disclosure rules, mergers and acquisitions, tender offers, proxy contests, and going-private transactions.

Moloney said in the SEC press release: "I am both excited and grateful for the opportunity to work with Chairman Atkins to establish a clear regulatory framework for companies to disclose valuable information to investors. There is much work ahead, and I look forward to reuniting with my colleagues in the Division of Corporation Finance to develop sensible, practical, and effective rules that allow businesses to thrive and investors to benefit."

During his tenure at the SEC from 1994 to 2000, Moloney served as a counsel in the Office of Mergers and Acquisitions within the Division of Corporation Finance, later being promoted to Special Counsel.

According to an analysis report released by Gibson Dunn in July, the SEC's enforcement agenda has undergone a comprehensive transformation since Trump returned to the White House in January for his second term. The report noted: "Since the inauguration, the cases filed by the Commission reflect a return to 'basic enforcement,' including fraud allegations and charges of 'lying, cheating, and stealing.'"