The number of active, non-public Securities and Exchange Commission (SEC) investigations into publicly traded U.S. companies has hit a record low. According to data released by research firm Disclosure Insight, undisclosed probes tracked by the firm dropped by 70%—a reduction of 83 companies—leaving just 36 U.S.-registered companies on its active watch list as of August 2026.

This represents the lowest volume of confirmed, undisclosed SEC investigations recorded in the firm's 26-year tracking history, down sharply from the 80 to 100 non-public inquiries typically monitored in previous years.

Reg FD

Regulation Fair Disclosure (Reg FD) is an SEC rule that ensures all publicly traded companies disclose material nonpublic information to all investors fairly and simultaneously. Implemented to prevent selective disclosure, Reg FD aims to level the playing field among investors and restore confidence in financial markets.

Many companies in the past released important information in meetings and conference calls that weren't accessible to all shareholders and the general public. The goal of Reg FD is to increase transparency and accountability and basically level the playing field between individual investors and institutional investors.

Why the drop? Key Drivers Behind the Collapse

• Regulatory Priority Shift: The dramatic decline coincides with policy adjustments under SEC Chair Paul Atkins and the SEC's Republican-majority Commission, signaling a far more selective approach to initiating enforcement actions.
• No Surge in Voluntary Disclosures: Analysts noted that the reduction is not driven by companies voluntarily disclosing investigations early. Corporate disclosure rates regarding ongoing inquiries have remained consistent with historical patterns.
• Elevated Risk Profile for Listed Firms: Because the overall pool of investigations has shrunk, the few companies remaining on the watch list represent matters where federal regulators have chosen to maintain active enforcement oversight despite a higher threshold for intervention.

Uncovering the Paper Trail

According to Disclosure Insight's John Gavin, because federal law does not require public companies to disclose an ongoing SEC inquiry until formal legal actions or enforcement proceedings occur, researchers track these probes through administrative filings:

• FOIA "Law Enforcement Exemption": Initial signals appear when Freedom of Information Act (FOIA) record requests are denied by the SEC's Office of FOIA Services, citing exemptions that protect active law enforcement activities.
• Administrative Appeals: Confirmation occurs when the SEC’s General Counsel upholds a FOIA exemption upon appeal, confirming the existence of active and ongoing investigative activity without releasing confidential details.