SEC Ends 54-Year Policy Restricting Settling Defendants From Speaking

The commission will no longer bar settling defendants from speaking after 54 years. The policy change ends a restriction that had been in place since the early 1970s. Officials said the previous rule limited the ability of defendants to discuss cases after reaching agreements.

Background on the Prior Rule The earlier policy prevented settling defendants from making public statements about their cases. It applied to individuals and entities that agreed to settlements with the commission. The rule had remained in effect without major changes for more than five decades. Officials described the decision as a shift in how settlements are handled.

Under the updated policy, settling defendants will be permitted to speak publicly. The commission stated that the change aligns with current practices in other regulatory areas. No specific timeline for implementation was provided in the announcement.