United States: CFTC to Offer Lower Fines to Offenders That Cooperate

The U.S. derivatives watchdog is planning to offer rewards to companies that turn themselves in, following in the footsteps of other regulators and law-enforcement agencies.

The Commodity Futures and Trading Commission is expected to release guidance Thursday spelling out how companies that self-report potential misconduct, cooperate with investigators and take steps to address underlying issues could receive a “substantially reduced” financial penalty.

The three-and-a-half page internal memo, which was shared with The Wall Street Journal, builds on a series of other short guidance documents the agency has released in recent years on everything from its standards for cooperation to its expectations on how market participants should design compliance programs to avoid infractions.

The latest guidance doesn’t make any substantive changes to prior policy, but appears merely to clarify that companies could be rewarded with lower fines if they follow the CFTC’s guidelines.

The original full article can be found at wsj.com


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