The Securities and Exchange Commission’s Division of Enforcement has issued staff guidance describing factors it considers in recommending that a litigated enforcement matter be brought in an administrative proceeding or in federal district court.

The SEC is authorized to bring enforcement matters either as a civil action in federal district court or an administrative proceeding before an administrative law judge, though it has authority to proceed on certain charges or remedies in only one forum or the other.

While the SEC’s Enforcement Division uses its discretion in assessing the forum recommendation, the guidance identifies a number of factors division staff considers in its recommendation to the Commission.

“The guidance outlines a number of factors the Enforcement Division considers in recommending to the Commission a forum for litigated enforcement actions,” said SEC enforcement chief Andrew Ceresney. “In every matter, the Enforcement Division makes its assessment based on the facts and circumstances of the particular case and recommends a forum that protects investors and the integrity of the markets through strong, effective, and fair enforcement of the federal securities laws.”

The guidance notes that “there is no rigid formula dictating the choice of forum.”

The factors include: The availability of the desired claims, legal theories, and forms of relief in each forum, whether any charged party is a registered entity or an individual associated with a registered entity, the cost‐, resource‐, and time‐effectiveness of litigation in each forum, and fair, consistent, and effective resolution of securities law issues and matters.