SEC Rescinds Long-Standing Policy on Denials of Settlements in Enforcement Actions

On May 18, 2026, the Securities and Exchange Commission (the “SEC” or “Commission”) announced that it had rescinded its long-standing “no-deny” policy, codified in Rule 202.5(e) of its informal rules of procedures, requiring defendants settling enforcement actions where a sanction is to be imposed to agree not to publicly deny the SEC’s allegations against them.... By: Vedder