Waiving Disqualification: When Do Securities Violators Receive a Reprieve?

In addition to considerable sanctions, criminal and civil securities enforcement actions trigger an array of collateral consequences. This Article studies automatic “bad-actor” and “ineligible-issuer” disqualifications, which bar disqualified firms from relying on relaxed disclosure and reporting requirements when raising external capital. First adopted in 1940, the disqualifications were primarily intended to reduce the risk of […]