In addition to leading compliance for Prudential’s registered investment advisory company, Karpati will also serve as CCO of the firm's mutual funds boards.

Karpati spent over 12 years at the SEC, most recently as national chief enforcement officer within its asset management unit. In this role, which he took up when the unit launched in 2010, he led enforcement efforts involving investment advisors, investment companies, mutual funds and private funds.

Following Karpati's departure from the SEC today, deputy chiefs Julie Riewe and Marshall Sprung will oversee the unit until a new leader is named, the US authority said in a statement.

Prudential Investments is the mutual fund business of New York-listed Prudential Financial, which has some $1.061 trillion of assets under management as of March 31. 

Prudential Financial has operations in the US, Asia, Europe and Latin America.