New CFTC Cooperation, Self-Reporting, And Remediation Enforcement Advisory Introduces Major Changes

The Commodity Futures Trading Commission's ("CFTC") new enforcement advisory introduces several major changes in policy and a matrix helping those facing potential or actual CFTC investigations quantify the extent to which cooperation, self-reporting, and remediation can be expected to reduce penalties (a.k.a. "mitigation credit") that the CFTC staff would otherwise recommend to the commission in most cases.

On February 25, 2025, the CFTC's Division of Enforcement ("Enforcement") issued an advisory establishing both the factors Enforcement will consider in evaluating the extent to which self-reporting, cooperation, and remediation should reduce civil monetary penalties that Enforcement recommends to the CFTC and how Enforcement will evaluate those factors. The advisory replaces all prior policies on these topics.