Regulatory Alerts2026-05-21 | 2026-10132Added
Rescission of Policy Regarding Denials in Settlements of Enforcement Actions
The Securities and Exchange Commission is rescinding Rule 202.5(e), which previously prohibited defendants from publicly denying allegations in settlements of enforcement actions. This final rule repeals the longstanding no-deny policy to address First Amendment challenges and recognize that the policy's benefits were limited while its potential to shield the agency from criticism was problematic. The change allows settling parties to deny allegations without violating settlement terms, thereby altering the Commission's approach to resolving civil lawsuits and administrative proceedings.
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