This update concerns SEC enforcement procedure and settlement policy, which is administrative and procedural in nature with no direct connection to retail banking products, deposit accounts, or consumer-facing banking services.
This is a procedural enforcement policy change unrelated to investment services, asset management, or any specific financial product or service delivery.
Specialism
The SEC's rescission of its no-deny settlement policy is a procedural change to enforcement practices that affects how the agency conducts settlement negotiations and manages enforcement outcomes.
The policy change relates to the SEC's supervisory and enforcement authority, making Supervision a relevant secondary tag as the procedural framework governing enforcement actions falls within broader supervisory oversight.
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2026-05-19 11:02:44·ggallwey@vixio.com
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TITLE: U.S. Securities and Exchange Commission Rescinds No-Deny Settlement Policy
BODY:
On May 18, 2026, the U.S. Securities and Exchange Commission (SEC) rescinded Rule 202.5(e) of its informal rules of procedures, which previously required defendants and respondents in settled enforcement actions to agree not to publicly deny the agency's allegations.
The policy change allows the SEC to settle enforcement actions without imposing restrictions on defendants' ability to publicly dispute the Commission's allegations. SEC Chairman Paul S. Atkins said the rescission "ends the policy prohibiting such criticism by settling defendants," noting that speech critical of the government is an important part of the American tradition. The SEC's previous no-deny requirement had been in place for more than 50 years.
The rescission aligns the SEC with the overwhelming majority of federal agencies, which do not maintain similar policies. The Commission determined that the effect on the public interest from public denials may be minimal and that the policy itself may have created an incorrect impression that the SEC was attempting to shield itself from criticism. The change provides the SEC greater flexibility in settling enforcement actions, which the agency said conserves resources, provides certainty, and potentially expedites the return of money to injured investors.
The SEC will not enforce existing no-deny provisions that have already been entered into settlement agreements. In the event of a breach of an existing no-deny provision, the Commission will take no action to ask a district court to vacate a settlement or to reopen an adjudicatory proceeding. The rescission does not affect the SEC's practice related to admissions in settlements or its discretion to negotiate for admissions as part of settlement agreements.
SEC.gov | SEC Rescinds Policy Regarding Denials of Settlements in Enforcement Actions Skip to search field Skip to main content Official websites use .gov A .gov website belongs to an official government organization in the United States. Secure .gov websites use HTTPS A lock ( Lock A locked padlock ) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites. More in this Section Press Release SEC Rescinds Policy Regarding Denials of Settlements in Enforcement Actions This policy change will allow the Commission to settle enforcement actions without requiring defendants to agree not to publicly deny the agency’s allegations For Immediate Release 2026-45 Washington D.C., May 18, 2026 — The Securities and Exchange Commission today rescinded a policy, codified in Rule 202.5(e) of its informal rules of procedures, stating that when it chooses to settle an enforcement action in which a sanction is imposed, it will not settle unless the defendant or respondent also agrees not to publicly deny the allegations in the complaint or administrative order. Rescinding Rule 202.5(e) aligns the Commission with the overwhelming majority of federal agencies that do not have a similar rule and gives the Commission more flexibility in settling enforcement actions, which conserves resources, provides certainty, and potentially expedites the return of money to injured investors. The recission recognizes that the effect on the public interest from such denials may be minimal and that the policy itself may have created an incorrect impression that the Commission is trying to shield itself from criticism. “For more than 50 years, the Commission has conditioned settlement on a defendant’s promise not to publicly deny the Commission’s allegations. I am pleased that we are rescinding the no-deny policy today,” said SEC Chairman Paul S. Atkins. “Speech critical of the government is an important part of the American tradition. This recission ends the policy prohibiting such criticism by settling defendants.” There is no known instance of the Commission seeking to reopen an administrative or civil proceeding as a consequence of a defendant or respondent violating a no-deny provision to which they have consented. In light of the recission of Rule 202.5(e), the Commission will not enforce existing no-deny provisions that have already been entered. In the event of a breach of an existing no-deny provision, the Commission will take no action to ask a district court to vacate a settlement (or to reopen an adjudicatory proceeding) in connection with the terms of the settlement agreement. The Commission generally does not require settling defendants to admit to allegations. Today’s recission does not affect the Commission’s practice related to admissions in settlements and does not affect the Commission’s discretion to settle with defendants who decline to admit facts or liability or its discretion to negotiate for admissions as part of a settlement. ### Last Reviewed or Updated: May 18, 2026 Resources Final Rule