PETITION about the U.S. Securities and Exchange Commission’s “Gag Rule”
SEC and some other federal financial regulators have “gag rules” in place that forbid defendants who settle charges brought by the agency from contesting any of the “facts” or allegations included in the original complaint against them.
SEC adopted its “gag rule” unlawfully by falsely calling it a “housekeeping rule” to avoid required notice and comment processes, even though it applies the rule against third parties outside the agency.
SEC refuses to settle unless defendants include this “gag rule” in the settlement agreement. It is not an option. It is not negotiable. But it silences them for life.
By the time SEC agrees to a settlement, it knows full well that not all of its original allegations were true, but it still refuses to allow a defendant to refute them.
SEC thus forbids defendants from even saying truthful speech!
SEC’s prior restraint of defendants’ speech clearly violates the First Amendment.
The government needs to know that it is high time to end this abusive practice! Otherwise, SEC will keep dodging critical scrutiny of its enforcement practices.
Sign NCLA’s petition today to tell SEC what you think about its unconstitutional gag rule! Please lend your voice to NCLA’s fight against SEC’s unfair policy!
- I believe the First Amendment protects the freedom of speech
for SEC defendants.
- I do not believe the SEC should be able to forbid defendants
who settle charges from engaging in truthful speech.
- I demand that the SEC repeal its unlawful gag rule.