On October 29, the Commodity Futures Trading Commission announced that the Division of Enforcement (Division) issued new guidance for its staff related to the recognition of a registrant’s self-reporting, cooperation or remediation in CFTC enforcement orders. The Division has not changed its existing process of how the enforcement staff will consider reductions in penalties in connection with self-reporting, cooperation or remediation; rather, the Division has clarified certain situations in which the staff will recognize a registrant’s actions in CFTC enforcement orders. Specifically, the guidance describes potential scenarios where the enforcement staff may recommend the recognition of a respondent’s action to be reflected in the CFTC enforcement order: (1) no self-reporting, cooperation or remediation; (2) no self-reporting, but cognizable cooperation and/or remediation that warrant recognition but not a recommended reduction in penalty; (3) no self-reporting, but substantial cooperation and/or recognition resulting in a reduced penalty; and (4) self-reporting, substantial cooperation and remediation resulting in a substantially reduced penalty.
The CFTC’s press release with a link to the Division’s guidance is available here.