CFTC Scraps ‘No-Deny’ Rule in Legal Settlements

The US Commodity Futures Trading Commission has rescinded a long-standing policy that prevented it from accepting a settlement if the defendant denied the agency’s allegations. The policy, first adopted in 1998, was dropped because it “may have created an incorrect impression that the Commission is trying to shield itself from criticism.” The move mirrors a similar change the US Securities and Exchange Commission made in May.

“For nearly three decades, the Commission has refused to settle cases unless the defendant promised not to publicly deny the Commission’s allegations,” CFTC Chairman Mike Selig said. “I am pleased that we are rescinding the no-deny policy consistent with regulators throughout the government.” The change gives the agency more flexibility when settling enforcement actions.

The decision does not erase existing no-deny provisions, and the commission will not enforce those clauses; it could still require some defendants to admit certain facts or liabilities when settling enforcement actions.

United States

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