Commodity Futures Trading Commission Follows Compliance Monitor Trend
Highlights
The CFTC’s Division of Enforcement issued an advisory on its updated position on corporate compliance monitorships, stating it will recommend that monitors be imposed where assistance of a third party to advise regarding remediation is necessary
This is another example of a larger trend toward government agencies using monitorships in enforcement actions
This trend is indicative of the government’s penchant for engaging a neutral third party to preemptively shore up an entity’s existing compliance programs
The Commodity Futures Trading Commission’s (CFTC) Division of Enforcement issued an advisory on Oct. 17 providing guidance on the nature of resolutions in enforcement actions. The advisory spoke to the sufficiency of monetary penalties and under what circumstances an admission should be required as part of a proposed resolution; however, its main impact was the position on corporate compliance monitorships.
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