SEC Clarifies When In-House Judges Are Used

For the first time, the Securities and Exchange Commission has provided guidance on when it chooses in-house judges to preside over securities cases, the Wall Street Journal's Aruna Viswanatha reports. The SEC revealed "it would consider bringing cases before its in-house courts when the alleged misconduct was old or if it presented unsettled legal issues."

The SEC got the ability to bring cases before administrative law judges in the 2010 Dodd-Frank law. The SEC has won 90 percent of those cases.

Defendants are arguing that the SEC's administrative-law process violates their due process rights.