Earlier this week, I wrote here about Commissioner Aguilar’s speech at SEC Speaks, and his wish that 2011 will bring an end to press releases issued by defendants following settlements arguing that “the conduct was really not that bad or that the regulator over-reacted.” If such statements continue, Aguilar said, “it may be worth revisiting the Commission’s practice of routinely accepting settlements from defendants who agree to sanctions ‘without admitting or denying’ the misconduct.” I asked if readers could send me examples of such press releases, and received a link to one interesting example discussed below from Charles Schwab.
On January 11, 2011,the SEC announced that it had “charged Charles Schwab Investment Management (CSIM) and Charles Schwab & Co., Inc. (CS&Co.) with making misleading statements regarding the Schwab YieldPlus Fund and failing to establish, maintain and enforce policies and procedures to prevent the misuse of material, nonpublic information.”
