Authors

Rose Arce

Article Title

The SEC and the Extent of Its Power to Sanction: An Analysis of Teicher v. Securities And Exchange Commission - Did the Court Correctly Apply Chevron v. Natural Resources Defense Council to a Matter of Agency Interpretation?

Abstract

This note will address two primary issues in analyzing Teicher. The first is whether the SEC has the authority within its sanctioning power, specifically under Section 15(b)(6) of the Exchange Act, to impose collateral limitations on a person who violates the Exchange Act, such as preventing that person from utilizing his or her license in another branch of the securities industry. The second is whether the SEC has the authority within its sanctioning power, specifically under Section 203(f) of the Advisers Act, to bar a person who violates the Adviser's Act from associating or seeking to become associated with an unregistered investment adviser. To place these two issues in context, this note will first discuss the SEC and its sanctioning authority within federal securities law enforcement. Second, this note will discuss the Chevron U.S.A., Inc. v. Natural Resources Defense Counsel deference standard that courts must use in reviewing agencies' statutory interpretations when administering sanctions. Finally, this note will present the facts, procedural history and court's analysis of Teicher, and will conclude with a critique of the court's determination deferring to the SEC's interpretation of Section 203(f) of the Advisers Act, but overruling the SEC's interpretation of Section 15(b)( 6) of the Exchange Act.

Recommended Citation

Rose Arce, The SEC and the Extent of Its Power to Sanction: An Analysis of Teicher v. Securities And Exchange Commission - Did the Court Correctly Apply Chevron v. Natural Resources Defense Council to a Matter of Agency Interpretation?, 30 Golden Gate U. L. Rev. (2000).
https://digitalcommons.law.ggu.edu/ggulrev/vol30/iss3/6