Acting Securities and Exchange Commission Chair Allison Herren Lee, in a public statement Feb. 11, announced the Division of Enforcement will no longer recommend to the Commission a settlement offer that is conditioned on granting a waiver, abruptly ending a policy that began under former SEC Chairman Jay Clayton.
Provisions in securities laws allow law-abiding companies to engage in activities with less oversight, fewer disclosure requirements, and limited liability. Companies that violate certain provisions of federal securities laws or settle SEC charges can lose those privileges, however, including the opportunity to register as a “well-known seasoned issuer,” engaging in certain private securities offerings under Rule 506 of Regulation D, and serving in certain capacities for an investment company.
