CFTC Division of Enforcement Director James M. McDonald urged regulated entities to heed recent published Civil Monetary Penalty Guidance, and to reference it in discussions with Division staff about the penalties associated with potential wrongdoing.
In remarks given at a forum organized by FIA, Mr. McDonald stated the penalty guidance was made publicly available to help serve its "ultimate goal" of deterring misconduct. Mr. McDonald noted that the penalty guidance is binding for Division staff, so regulated entities can expect consistent enforcement across departments.
Commentary / Kyle DeYoung
Director McDonald's remarks and the Civil Monetary Penalty Guidance are the latest in a series of steps the CFTC has taken to increase transparency and serve its core value of "Clarity." On the enforcement front, this follows last year's publication of the CFTC's first public Enforcement Manual (previously covered here). While the criteria set out in the guidance shouldn't be a surprise to anyone, companies and individuals facing potential enforcement actions should heed Director McDonald's advice: "To the extent you are preparing for discussions with the staff about penalties, your preparation should focus on the factors laid out in the guidance."
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