SEC Echoes Agencies, Affirms Guidance Is Nonbinding

Echoing a similar statement made by the financial regulatory agencies earlier this week, the Securities and Exchange Commission today affirmed that its regulatory guidance is nonbinding. In a statement, SEC Chairman Jay Clayton reiterated that “[t]he Commission’s longstanding position is that all staff statements are nonbinding and create no enforceable legal rights or obligations of the Commission or other parties.”

Clayton added that he has directed SEC leadership to emphasize the appropriate application of guidance to staff and that the commission will continue its ongoing review of existing guidance documents — including written statements, compliance guides, letters, speeches, FAQs and others — to determine if any should be modified, rescinded or supplemented.