The Commodity Futures Trading Commission on Wednesday rescinded Appendix A to Part 10, ending a policy that barred settlements where defendants continued to deny the allegations in the complaint or administrative order.
The change takes effect immediately and applies retroactively. The Commission said it will not enforce no-deny provisions that have already been entered in prior settlements.
The CFTC had required defendants to refrain from publicly disputing the agency’s allegations as a condition of settling enforcement actions. That requirement is now gone, though the Commission retains its discretion to settle without admissions or to negotiate for admissions where it sees fit.
The Commission said the move aligns it with the “overwhelming majority of federal agencies,” gives it more flexibility in settlements, conserves resources, and could speed the return of funds to injured investors. It also said the old policy may have created “an incorrect impression that the Commission is trying to shield itself from criticism.”
“For nearly three decades, the Commission has refused to settle cases unless the defendant promised not to publicly deny the Commission’s allegations. I am pleased that we are rescinding the no-deny policy consistent with regulators throughout the government,” said CFTC Chairman Michael S. Selig.
