Sullivan & Cromwell Partners Kathleen McArthur and John Liolos and associate Berke Gursoy co-authored an article for Law360 regarding the U.S. Commodity Futures Trading Commission’s Staff Advisory setting forth the Division of Enforcement's policy on self-reporting, cooperation and remediation, which substantially expands the incentives introduced under the Division of Enforcement’s February 2025 advisory. The policy shift suggests a deliberate, administration-wide effort to harmonize voluntary self-disclosure incentives across the principal federal enforcement authorities, consistent with recent parallel reforms at the SEC, DOJ and the U.S. Attorney’s Office for the Southern District of New York.
Examining the impact of this policy, the authors note that the policy has practical consequences for registrants, market participants and individuals involved in CFTC enforcement matters, both prospectively and with respect to pending matters. “For registrants and market participants, the cumulative message is clear: Investing in a robust compliance program and coming forward early now carries consistent, quantified and meaningful benefits across all of a firm's most significant federal enforcement relationships, and the calculus in favor of that investment has rarely been more compelling,” the authors write.
S&C Partner Andrew DeFilippis also contributed to this article.
Read the article on Law360: “CFTC Policy Substantially Expands Self-Reporting Incentives”