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SEC changes 'neither admit nor deny' policy

SEC changes 'neither admit nor deny' policy

The Securities and Exchange Commission is ending its policy of allowing companies and individuals to neither admit nor deny wrongdoing in some settlements.
That longstanding policy was criticized recently by a federal judge who cited it as a reason for throwing out a $285 million deal in November between the SEC and Citigroup.
The change disclosed Friday by the SEC will not apply to that case or to most SEC settlements. It will affect only cases in which both the SEC and criminal authorities, such as the Justice Department, bring charges against a company or individual, and the company or person admits guilt to resolve criminal charges.
The criminal admission now can be cited in the SEC settlement.


Updated : 2021-03-03 11:35 GMT+08:00