The U.S. Commodity Futures Trading Commission (CFTC) is joining the U.S. Securities and Exchange Commission (SEC) in dropping the “neither admit, nor deny” approach to enforcement settlements.
The derivatives regulator rescinded its policy of refusing to accept settlements where the respondent in enforcement actions continues to deny the allegations against them — a step that the SEC took last month too.
The CFTC said the move will give it more flexibility in settling enforcement actions, noting that these sorts of denials may have a minimal impact on the public interest.
The regulator will also still have the discretion to negotiate admissions of wrongdoing as part of future enforcement settlements, it said.
“Today’s action harmonizes the commission’s settlement approach with those taken by other agencies and ensures fairer resolutions in enforcement matters,” said David Miller, director of the CFTC’s division of enforcement, in a release.
As a result of the switch in policy, the regulator said it will not enforce existing no-deny provisions that have already been agreed to in existing settlements.