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Regulatory Settlements

Definition

Regulatory settlements represent agreements resolving enforcement actions between regulators and regulated entities. These resolutions typically involve monetary penalties, restitution to affected parties, and commitments to implement corrective compliance measures, avoiding prolonged litigation. Settlements are often reached when a party agrees to pay a fine or alter its business practices without admitting or denying the allegations. They serve as a mechanism for regulatory bodies to enforce rules and deter future violations efficiently.