September 15, 2020
On September 10, 2020, the Division of Enforcement of the U.S. Commodity Futures Trading Commission issued guidance for evaluating corporate compliance programs in connection with enforcement charging and penalty matters. Along with certain penalty guidance published by the Division of Enforcement in May 2020, it provides useful direction for companies operating in CFTC-regulated markets.
The Compliance Program Guidance underscores the importance of routine and proactive assessments of a company's control environment. Indeed, recent CFTC resolutions demonstrate the significant consequences of failing to prepare for or adequately respond to apparent violations or to investigations (see our August 2020 client briefing). In addition to the Compliance Program Guidance, CFTC market participants should familiarize themselves with CFTC enforcement advisories issued since 2017 concerning cooperation and self-reporting (see our January 2017, September 2017, and March 2019 client briefings). Entities seeking a comprehensive overview of the regulatory and enforcement apparatus in this area would be well-served by our Guide to United States and United Kingdom Derivative and Commodity Market Enforcement Regimes, and those facing the prospect of a government inquiry may also wish to review our Futures Industry Association webinar Don't make it worse: responding properly to US/UK investigations.