U.S. Securities and Exchange Commission seal in Washington, D.C. January 5, 2019. Photo: Diego M. Radzinschi/ALM The Importance of the 'How' and the 'Why' in SEC Settlement Penalty Calculations
SEC settlements are meant to serve a public good by providing clear guidance as to the rules of the road and the consequences of ignoring them. Yet SEC settlements often lack explanation as to how the civil monetary penalties were calculated per the statutory framework or why such penalties were appropriate under the circumstances.
December 01, 2023 at 10:00 AM
10 minute read
White Collar Crime
U.S. Securities and Exchange Commission (SEC) settlements are meant to serve a public good by providing clear guidance as to the rules of the road and the consequences of ignoring them. Yet SEC settlements often lack explanation as to how the civil monetary penalties were calculated per the statutory framework or why such penalties were appropriate under the circumstances. This lack of transparency tends to create market confusion and may frustrate certain behavior the SEC seeks to encourage, namely self-reporting.
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