In a keynote address, U.S. Securities and Exchange Commission (SEC) Chair Paul S. Atkins set out procedural expectations aimed at increasing fairness and transparency in the SEC’s enforcement program, with a focus on strengthening the Wells process and reducing uncertainty around settlements that require waivers from collateral consequences. On the Wells process, Atkins said the Enforcement Division should provide sufficient information with a Wells notice for recipients to understand the potential charges and evidentiary basis, and should share material from the investigative file subject to statutory and programmatic constraints, including confidentiality obligations and sensitivities around parallel criminal investigations. He added that, going forward, enforcement staff will provide at least four weeks for Wells submissions, with senior enforcement leadership continuing to meet with defense counsel when requested in a timely manner, and noted limited circumstances where a Wells notice may not be practicable, such as when emergency relief is needed in an ongoing fraud. Atkins also endorsed earlier engagement during investigations and a “white paper” process as alternatives or complements to Wells submissions, and said Commissioners receive every Wells submission in settled and contested matters. Separately, Atkins described a change to restore simultaneous Commission consideration of settlement offers and related waiver requests, with Enforcement and the relevant policy divisions presenting them together unless the Commission opts to consider them independently. Where the Commission accepts a settlement but declines the waiver request, he said staff should promptly notify the prospective respondent or defendant, who must then promptly indicate whether it will proceed on the accepted settlement terms, with potential re-evaluation of terms and litigation if the offer is withdrawn.
U.S. Securities & Exchange Commission 2025-10-09
U.S. Securities and Exchange Commission chair outlines enforcement process changes including a four-week minimum for Wells submissions and joint settlement waiver review
SEC Chair Paul S. Atkins outlined measures to enhance fairness and transparency in the enforcement program, focusing on the Wells process and settlement waivers. Key steps include detailed Wells notices, a four-week submission period, and senior leadership engagement. Atkins announced simultaneous consideration of settlement offers and waiver requests, with prompt notification if a waiver is declined.