The Commodity Futures Trading Commission (CFTC) issued new guidance for firms seeking to self-report misconduct, accompanied by a “mitigation credit index” that details how “exemplary” cooperation and remediation can knock up to 55 percent off the final penalty. The CFTC is the first enforcement agency to issue self-reporting guidance under President Donald Trump.
The CFTC’s Division of Enforcement issued guidance Tuesday laying out its new policies for providing credit to firms that self-report violations, then cooperate with the investigation and remediate the misconduct. The agency said that in an effort to promote compliance and to ensure accountability for those who violate the law, the guidance “sets forth the approach the division will use to evaluate self-reporting, cooperation, and remediation to determine Mitigation Credit and achieve these goals consistent with the principles of regulatory consistency, transparency, and clarity.”
