While a federal appeals court recently rebuffed a judge’s ruling to toss out a controversial fraud settlement with Citigroup, it has reignited a debate over the SEC’s settlement authority.

In an article in the March-April issue of CFA Magazine, Linda Rittenhouse, director of capital markets policy for CFA Institute, asks the question: Is it better to recoup some money for harmed investors at the cost of only a slap on the firm’s wrist, or is the marketplace better served over time by forcing more accountability on the part of wrongdoers, starting with a public admission of guilt and fines that actually hurt?