The Securities and Exchange Commission (SEC) on Wednesday launched a searchable database of individuals who have been targeted by the federal watchdog for allegedly breaking trading laws, The Hill reported. The database, called the SEC Action Lookup for Individuals (SALI), allows investors to check whether the person offering them an investment has been penalized for violating securities laws. The tool is intended to help investors avoid bad actors likely to defraud them, SEC Chairman Jay Clayton said in a statement. "One of the SEC’s most important tasks is to arm our investors with the tools necessary to identify potential fraudsters. An important risk factor is whether the person you are dealing with has a disciplinary history with the SEC or other regulators,” Clayton said. The SEC said that the database will include individuals “who have settled, defaulted, or contested an enforcement action brought by the SEC, provided that a final judgment or order was entered against them in a federal court or an administrative proceeding.”
