Will the CFPB follow the SEC’s policy shift on “neither admit nor deny” settlements?

more+
less-
more+
less-

Last week, the Securities and Exchange Commission announced a policy shift concerning settled enforcement actions. The SEC has indicated that it will more frequently require an admission of wrongdoing from defendants as a condition of settlement. For more on the SEC’s policy shift, see our legal alert.

Like the SEC, the CFPB has allowed defendants in enforcement actions to enter into settlements “without admitting or denying” wrongdoing. It is possible the CFPB could make a similar change in its policy. Indeed, the fact that  Senator Elizabeth Warren was a leading critic of the SEC’s “neither admit nor deny” policy could make the CFPB more favorably disposed to making such a change. Because of the difficulty that defendants in enforcement actions may face by admitting any wrongdoing, a change in CFPB policy could preclude many companies from settling with the CFPB.

Written by:

Published In:

SEC

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ballard Spahr LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×