The SEC Believes a Bar Only Relates to the Future Not the Past, Yeah Right!!
As many know, the Dodd-Frank Act confirmed the SEC's power to seek and/or impose certain penalties and remedies. A recent case against a hedge fund manager illustrates just how far the SEC is willing to go. In the Matter of John W. Lawton, http://www.sec.gov/litigation/opinions/2012/ia-3513.pdf.
The manager was accused of fraud. After a hearing, the SEC banned this manager from association with a BD, RIA, and municipal securities dealer, among others, despite the fact the conduct occurred before the Dodd-Frank Act. The SEC claimed this "collateral" bar-- as it is termed-- was not done retroactively, but prospectively. As such, the SEC was "only" protecting the public and not punishing conduct arising before the statute.
Alas, another SEC over-reach, however, it is unlikely to end any time soon so those securities professionals must be ever vigilant to avoid the SEC's wrath.