SEC To Push Admissions Of Wrongdoing In Some Cases

Jun 20 2013 | 11:25am ET

Facing criticism for allowing defendants to settle without admitting wrongdoing, the Securities and Exchange Commission will limit the practice.

New SEC Chairman Mary Jo White said that some companies and individuals will have to accept liability in "cases where… it's very important to have that public acknowledgement." Most defendants will still be allowed to settle without admitting or denying guilt.

White said that decisions would be made on a "case-by-case" basis, and defended the SEC's standard practice, saying it would always "be a major tool in the arsenal and that the SEC "won't let" the new policy delay enforcement efforts.

While the practice has been derided, the SEC said it allows it to resolve cases more quickly and cheaply. But it has been moving to limit the practice, last year instituting a rule that bars defendants who have already admitted guilt in criminal proceedings from using the boilerplate.

Those defendants denied the "without admitting or denying" formula will now have the choice of accepting liability, or fighting the SEC's allegations in court.


In Depth

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.