SEC changes its “neither admit nor deny” policy for settlements

The regulator claims the change has nothing to do with Citibank settlement rejection

On Friday, the Securities and Exchange Commission (SEC) said that companies who have already admitted wrongdoing in criminal cases will no longer be able to “neither admit nor deny” their misconduct when settling with the SEC over the same allegations. The SEC claims that this policy change has nothing to do with Judge Jed Rakoff’s recent rejection of its settlement with Citibank, despite the fact that Rakoff criticized the “neither admit nor deny” practice in his decision.

SEC Enforcement Director Robert Khuzami wrote in a statement that “the new policy does not require admissions or adjudications of fact beyond those already made in criminal cases, but eliminates language that may be construed as inconsistent with admissions or findings that have already been made in the criminal cases.”

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