The CFTC Resets Its Cooperation Framework: New Advisory Creates Clear Path To Declination

Key Takeaways

• The CFTC’s Division of Enforcement issued a new cooperation advisory that creates a clear path to declination, subject to the Division’s discretion, for companies that self-report, fully cooperate, provide full restitution and/or disgorgement, and remediate misconduct, absent aggravating circumstances.
• The advisory replaces prior, highly structured guidance with a more streamlined approach.
• The Division will credit prompt, good-faith self-reporting even if the CFTC already learned of the misconduct from another source, a notable departure from past practice.
• The new advisory reflects the Commission’s continuing effort to recalibrate its cooperation framework, but frequent revisions to cooperation policies create uncertainty for market participants weighing self-reporting decisions.