In June 2013, SEC Chair Mary Jo White announced a new SEC policy requiring admissions as part of settlements in certain types of cases.  The criteria for admission cases, as stated by Chair White and an SEC staff memo, included the following factors:

• A large number of investors have been harmed or the conduct was otherwise egregious
• The conduct posed a significant risk to the market
• Admissions would aid investors in deciding whether to deal with a particular party in the future
• Disclosing the facts would send an important message to the market
• Intentional misconduct
• Obstruction of an investigation

In practice, the SEC has rarely required defendants to make admissions in settlements.…