By Nick Paraskeva, contributing author for Compliance Complete
NEW YORK, June 24 (Thomson Reuters Accelus) – A new enforcement policy to require admissions of guilt in serious civil cases will be a potent weapon for the Securities and Exchange Commission, (SEC), if the agency chooses to use it. The change will appease some of those who criticized the SEC for a tepid enforcement response to the crisis. However, without a transparent process, there will be little way of knowing in which cases the admission is being sought.
Recently-appointed SEC Chairman Mary Jo White this week announced a policy change, to require firms to admit guilt in the most serious enforcement cases. Like other agencies, the SEC has routinely settled cases where a defendant neither admits nor denies wrongdoing. An agreed-upon set of facts is published that describes the nature of the defendant’s actions, the charges being settled, and the agreed penalty. (more…)