White says US SEC to seek admissions in certain settlements

WASHINGTON, June 18 Tue Jun 18, 2013 5:53pm EDT

WASHINGTON, June 18 (Reuters) - U.S. securities regulators will start asking defendants in some instances to admit to wrongdoing when they settle cases, U.S. Securities and Exchange Commission Chair Mary Jo White said on Tuesday.

The change comes after the SEC had faced staunch criticism from one prominent federal judge and some lawmakers of its routine policy, in which companies and individuals have been allowed to settle civil charges without admitting or denying the allegations.

White, at the Wall Street Journal's annual "CFO Network" event, said she has decided the SEC will in certain circumstances start trying to extract admissions.

However, the standard policy of settling without admitting or denying the charges will still remain for the majority of cases, she added.

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