CFTC Rescinds Policy Regarding Denials of Settlements in Enforcement Actions

WASHINGTON - The Commodity Futures Trading Commission today rescinded a policy, codified in Appendix A to Part 10, stating that the Commission will not accept settlement offers where the defendant continues to deny the allegations in the complaint or administrative order.

Rescinding this policy aligns the Commission with the overwhelming majority of federal agencies 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 rescission 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 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.

"Today's action harmonizes the Commission's settlement approach with those taken by other agencies and ensures fairer resolutions in enforcement matters," Director of the Division of Enforcement David Miller.

In light of the recission of the no-deny policy, the Commission will not enforce existing no-deny provisions that have already been entered. Today's rescission 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.