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SEC Ends Silence Rule on Settlements
19 May
Summary
- The SEC has rescinded a decades-old policy regarding settlement silence.
- Companies and individuals can now speak publicly after settling SEC cases.
- This change allows for more transparency in enforcement actions.
The Securities and Exchange Commission (SEC) has officially rescinded a policy that mandated silence for entities settling enforcement actions. This policy, in effect for decades, previously required companies and individuals to refrain from discussing the details of their settlements. The regulator announced this significant change on Monday, allowing parties to now speak publicly after reaching an agreement.
This development marks a departure from previous SEC practices and is expected to introduce greater transparency into the settlement process. By lifting the gag order, the SEC is enabling a more open dialogue concerning enforcement outcomes. The update directly impacts how companies and individuals can communicate their involvement and the terms of any resolution with the regulatory body.
