In an effort to quell internal (including outspoken SEC Commissioners) and external criticism, the SEC has published its policy on bad actor waivers. The policy looks fair on its face.  Application is another thing.

Initially I think it will lead to lots of those uncomfortable conversations between client and counsel that say “on the one hand these facts are good” and “on the other hand these facts are not.”

Should the SEC continue to publish waiver decisions and enough information to ascertain  the reasons therefore, eventually the securities bar will figure it out.