The Commodity Futures Trading Commission’s Division of Enforcement issued an advisory setting out how it will assess self-reporting, cooperation, and remediation when recommending enforcement actions to the Commission, including a first-time matrix for determining presumptive mitigation credit against civil monetary penalties. The framework grades self-reporting on a three-tier scale and cooperation on a four-tier scale, with remediation assessed as part of cooperation and involving input from other CFTC divisions. Full self-reporting credit depends on a voluntary, timely, complete disclosure made to the Commission, either through the Division of Enforcement or another relevant division, and a safe harbor applies for good faith reports where inaccuracies are promptly corrected. The advisory’s Mitigation Credit Matrix sets presumptive credit from 0% for no self-report and no cooperation up to 55% for exemplary self-reporting and exemplary cooperation, while preserving the Division’s discretion to depart from the matrix based on case-specific facts.
Commodity Futures Trading Commission 2025-02-25
Commodity Futures Trading Commission enforcement division introduces mitigation credit matrix of up to 55% for exemplary self-reporting and cooperation
The Commodity Futures Trading Commission's Division of Enforcement issued an advisory on assessment criteria for self-reporting, cooperation, and remediation, introducing a Mitigation Credit Matrix for civil penalty reductions. The matrix offers up to 55% credit for exemplary self-reporting and cooperation, with full credit contingent on voluntary, timely, and complete disclosure. The Division retains discretion to adjust credits based on specific case facts.