The SEC has rescinded a policy that has shaped enforcement settlements for more than 50 years.

Under former Rule 202.5(e), firms could settle without admitting wrongdoing, but were required not to publicly deny the SEC’s allegations. With that restriction now removed, firms have greater flexibility in both settlement strategy and post-settlement communications.

This shift may make settlements more attractive, but it also raises important considerations. We’ve developed a short summary of the change and its practical implications for firms.

At Bristal Lane, we are helping clients navigate these developments, including settlement positioning, disclosure alignment, and communication strategy