Rescission of Policy Regarding Denials in Settlements of Enforcement Actions
Key claim: The SEC is rescinding its informal procedural rule that governed how it handles denials in settlements of enforcement actions in judicial or administrative proceedings.
Abstract
(Rule · Securities and Exchange Commission) The Securities and Exchange Commission (“Commission”) is rescinding a rule of informal procedure that concerns settlements in judicial or administrative proceedings.
Why this matters
The SEC’s rescission removes a longstanding informal constraint that barred parties settling SEC enforcement matters from publicly denying the underlying allegations, giving defendants more latitude in post-settlement public statements. Combined with the CFTC’s parallel action, it marks a notable cross-agency retreat from a hallmark of federal financial enforcement practice, potentially affecting settlement dynamics, disclosure risk, and collateral litigation exposure for regulated firms and individuals.