On April 17, 2025, the staff of the Commodity Futures Trade Commission's (CFTC or Commission) Operating Divisions (Division Staff) issued an advisory (the Advisory) announcing criteria for determining whether to refer compliance matters to the Division of Enforcement (Enforcement Staff). In a nutshell, Division Staff will only refer the most serious, material compliance issues to Enforcement Staff for investigation and possible charges.
This is a welcome development and eliminates the specter of potential charges and fines. But the Advisory seems unlikely to eliminate—or may not even substantially reduce—certain burdens commonly associated with enforcement reviews of compliance matters and introduces new complexities and costs to registered firms' ongoing relationships with and oversight by Division Staff.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
