ARTICLE · 22 MAY 2025

SEC Rescinds “No-Deny” Policy

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After more than 50 years, the Securities and Exchange Commission has rescinded its controversial "no-deny" policy that prevented defendants from publicly contesting allegations after settling enforcement actions.

United StatesCorporate/Commercial Law

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At A Glance

Effective yesterday, on May 21, after more than 50 years, the Securities and Exchange Commission (“SEC” or “the Commission”) rescinded their rule requiring defendants settling enforcement actions not to publicly deny the SEC’s allegations—known as the “no-deny” policy, as enacted in Rule 202.5(e) in 1972. This Legal Update explores the background and implications of the rescission of the SEC’s “no-deny” policy.

Background of the SEC’s Rescission of the “No-Deny” Policy

Critics have long argued that the SEC’s no-deny policy repressed speech and reduced transparency. Now that policy is gone. As a result of the rescission, settling defendants will no longer be required to agree not to publicly deny the allegations in the complaint or administrative order as a condition of settlement and will be free to publicly comment on or contest the allegations following resolution.

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SEC Rescinds “No-Deny” Policy

At A Glance

Background of the SEC’s Rescission of the “No-Deny” Policy

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