Law360, New York -- Facing judicial criticism, the U.S. Securities and Exchange Commission modified its long-standing "neither admit nor deny" settlement policy in 2013, announcing it would require admissions of wrongdoing in certain classes of egregious conduct. For that policy to achieve its promise and deterrent effect, the SEC must abide by it and implement it transparently. Instead of burying the lead, the commission should say what compelled it to seek the admissions - especially in cases not involving headline harm to investors or markets.

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