The military appeals court judge tapped to helm the Securities and Exchange Commission's division of enforcement may be an unconventional pick, but her appointment has been applauded by some broker-dealer groups.
Judge Margaret "Meg" Ryan, a senior judge of the U.S. Court of Appeals for the Armed Forces, will become director of the SEC's division of enforcement effective Sept. 2, the agency announced Aug. 21. Acting Director of Enforcement Sam Waldon will return to his previous position as the enforcement division's chief counsel. the SEC said in a release.
SEC Chairman Paul S. Atkins said in the release that Ryan brings "decades of experience as a respected judge and practitioner of the law" to the commission.
"Judge Ryan will lead the division guided by Congress' original intent: enforcing the securities laws, particularly as they relate to fraud and manipulation," Atkins said.
Commenting on her appointment, Judge Ryan said she looks forward to "joining the commission in its important work to ensure that the division is true to the SEC's mission in taking action on behalf of investors harmed by those who break the securities laws and providing an effective deterrent against fraudulent and manipulative activities in our financial markets," according to the release.
Andrew Feller, a former SEC enforcement attorney who is now senior special counsel at law firm Kohn, Kohn & Colapinto, said Ryan is an unconventional pick, less because she's coming from a court and more because she doesn't appear to have much obvious experience in securities or capital markets work.
"Her immediate predecessor, Gurbir Grewal, was also an unconventional pick, and came without a typical SEC resume, but he had some more obviously relevant experience as an [Assistant United States Attorney] and [New Jersey] Attorney General," Feller said. "I do think there's a value to unconventional picks, especially in not picking someone coming directly from BigLaw."
The SEC in October 2024 announced that then-enforcement director Grewal would be departing the agency effective Oct. 11, 2024.
Feller said Ryan's comments regarding her appointment echoed Chairman Atkins' recent comments regarding focusing enforcement efforts on fraud and manipulation.
"That likely indicates at least an intent to resolve non-fraud matters, and particularly matters involving technical or procedural violations, through avenues other than enforcement," Feller said.
In a statement Friday, the American Securities Association, a trade group representing regional financial services firms, applauded Atkins for naming Judge Ryan to the role.
"Judge Ryan has impeccable credentials, and we look forward to working with an honest, transparent, and highly respected practitioner of the law who will return the SEC's Enforcement Division to objectively calling balls and strikes," ASA President and CEO Chris Iacovella said in the statement.
Ryan was nominated to the U.S. Court of Appeals for the Armed Forces in 2006 by President George W. Bush. The court's website lists Ryan among the court's prior judges, indicating that her active service was from Dec. 20, 2006 to July 31, 2020. The court's chief judge has discretion to call upon a former judge of the court who, like Ryan, is in senior judge status to sit as a senior judge if an active judge is unable to participate.
The Bond Dealers of America is encouraged by Judge Ryan's appointment to director of the enforcement division, Michael Decker, senior vice president for research and public policy at BDA, said.
"Her many years of legal and judicial experience have given her a stellar preparation, and we especially welcome the Commission's commitment overall to enforcement according to congressional intent," Decker said.
Before becoming a judge, Ryan was a partner at two law firms, the release said. She previously was a law clerk to U.S. Supreme Court Associate Justice Clarence Thomas and to Judge J. Michael Luttig of the U.S. Court of Appeals for the Fourth Circuit.
Ryan graduated first in her class from Notre Dame Law School and was an editorial board member of the Notre Dame Law Review, according to the release.
Atkins also thanked Waldon for serving as acting director of enforcement since January.
"I am very pleased that he will continue serving at the commission in the critical role of chief counsel for the enforcement division," the SEC chairman said in the release. "His good judgement and knowledge of the securities laws serve the SEC very effectively."
