Rule2025-11332
Policy Statement Concerning Agency Referrals for Potential Criminal Enforcement
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 20, 2025
Effective
June 20, 2025
Issuing agencies
Securities and Exchange Commission
Abstract
Pursuant to Executive Order 14294, the Securities and Exchange Commission ("Commission") is publishing this framework for staff consideration of whether to refer potential violations, including of criminal regulatory offenses, to the Department of Justice.
Full Text
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<title>Federal Register, Volume 90 Issue 117 (Friday, June 20, 2025)</title>
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[Federal Register Volume 90, Number 117 (Friday, June 20, 2025)]
[Rules and Regulations]
[Pages 26203-26204]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-11332]
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SECURITIES AND EXCHANGE COMMISSION
17 CFR Part 202
[Release 34-103277]
Policy Statement Concerning Agency Referrals for Potential
Criminal Enforcement
AGENCY: Securities and Exchange Commission.
ACTION: Final rule; policy statement.
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SUMMARY: Pursuant to Executive Order 14294, the Securities and Exchange
Commission (``Commission'') is publishing this framework for staff
consideration of whether to refer potential violations, including of
criminal regulatory offenses, to the Department of Justice.
DATES: This final rule and policy statement is effective June 20, 2025.
FOR FURTHER INFORMATION CONTACT: Samuel Waldon, Acting Director,
Division of Enforcement, at (202) 551-4500, Division of Enforcement,
Securities and Exchange Commission, 100 F Street NE, Washington, DC
20549.
SUPPLEMENTARY INFORMATION: On May 9, 2025, the President issued
Executive Order 14294 (``Executive Order''), titled Fighting
Overcriminalization in Federal Regulations. 90 FR 20363 (published May
14, 2025). Among other things, the Executive Order directs each agency
to publish guidance in the Federal Register describing its plan to
address criminally liable regulatory offenses, including by considering
certain factors when deciding whether to refer alleged violations of
criminal regulatory offenses to the Department of Justice. The
Executive Order defines a criminal regulatory offense to mean ``a
Federal regulation that is enforceable by a
[[Page 26204]]
criminal penalty.'' In accordance with the Executive Order, the
Commission is publishing this framework for Commission staff
consideration of whether to refer potential violations, including of
criminal regulatory offenses, to the Department of Justice.
Administrative Law Matters
The provisions of the Administrative Procedure Act (``APA''), 5
U.S.C. 553, regarding notice of proposed rulemaking, opportunities for
public comment, and prior publication are not applicable to general
statements of policy, such as this policy statement. Similarly, the
provisions of the Regulatory Flexibility Act, 5 U.S.C. 601-602, apply
only when notice and comment are required by the APA or another statute
and are therefore not applicable. For similar reasons, the provisions
of the Small Business Regulatory Enforcement Fairness Act are not
applicable. See 5 U.S.C. 804(3)(C) (the term ``rule'' does not include
``any rule of agency organization, procedure, or practice that does not
substantially affect the rights or obligations of non-agency
parties''). This statement does not impose any collection of
information requirements as defined by the Paperwork Reduction Act of
1995. See 5 CFR 1320.3(c).
List of Subjects in 17 CFR Part 202
Administrative practice and procedure.
Text of Amendment
For the reasons set out in the preamble, the Commission is amending
title 17, chapter II of the Code of Federal Regulations as follows:
PART 202--INFORMAL AND OTHER PROCEDURES
0
1. The general authority citation for part 202 is revised to read as
follows:
Authority: 15 U.S.C. 77s, 77t, 77sss, 77uuu, 78d-1, 78u, 78w,
80a-37, 80a-41, 80b-9, 80b-11, and 7202, unless otherwise noted.
* * * * *
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2. Add Sec. 202.14 to read as follows:
Sec. 202.14 Policy statement concerning agency referrals for
potential criminal enforcement.
(a) Subject to appropriate exceptions and to the extent consistent
with law, in considering whether to refer potential violations,
including of criminal regulatory offenses, to the Department of
Justice, the staff of the Commission should consider, among other
factors:
(1) The harm or risk of harm, pecuniary or otherwise, caused by the
potential offense, including whether the putative defendant's conduct
harmed or risked harming many victims;
(2) The potential gain to the putative defendant that could result
from the offense;
(3) Whether the putative defendant held specialized knowledge,
expertise, or was licensed in an industry related to the rule or
regulation at issue;
(4) Whether the putative defendant knew the conduct would cause
harm or that it violated the law;
(5) Whether the putative defendant is a recidivist or has otherwise
engaged in a pattern of misconduct; and
(6) Whether the involvement of the Department of Justice will
provide additional meaningful protection to investors.
(b) This general policy is not intended to, and does not, create
any right or benefit, substantive or procedural, enforceable at law or
in equity by any party against the United States, its departments,
agencies, or entities, its officers, employees, or agents, or any other
person.
By the Commission.
Dated: June 16, 2025.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2025-11332 Filed 6-18-25; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on June 20, 2025.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.