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Bailey McCann, Opalesque New York:

The SEC will give defendants more liberties in administrative court proceedings according to an announcement from the agency made late last night. The SEC had been facing criticism from judges and members of the business community that its in-house court was an unfair advantage. The commission calls the changes a "modernization," of its rules.

The SEC has opened a 60 day comment period on the proposed rule changes which include extending the time a defendant has to prepare their case, allowing depositions ahead of a trial, and a new allowance for electronic filing.

According to analysis from The Wall Street Journal, the SEC had a 90% win rate when it used its own administrative court, as compared to its track record in the actual court system. The agency has a 69% win rate in federal court. Since that analysis came out, several court challenges against the use of the SEC's administrative court have cited the newspaper's findings. It is worth noting that despite a relatively high win rate in both types of court, the vast majority of enforcement actions result in fines and settlements, as opposed to jail time or even admissions of guilt.

Even with the changes, the agency still retains its ability to act as both enforcer and judge. Critics have questioned the objectivity of the commission being allowed to work both sides of a cas......................

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