CFTC follows SEC in scrapping ‘no-deny’ policy for settlements
CFTC Chairman Mike Selig says the rescission of its “no-deny” policy means it now has more flexibility when settling enforcement actions.
The US Commodity Futures Trading Commission has rescinded a long-standing policy that prevented it from accepting a lawsuit settlement if the defendant denied the agency’s allegations.
The CFTC said on Wednesday that it scrapped the policy, first adopted in 1998, because it “may have created an incorrect impression that the Commission is trying to shield itself from criticism.”
The language was similar to that provided by the US Securities and Exchange Commission when it rescinded a similar policy in May.