In a case concerning the CFTC's reparations jurisdiction, the agency concluded that the reparations provisions under CEA Section 14 ("Complaints against registered persons") extend to the conduct of a person registered in a capacity with one entity when that person acts on behalf of a second, unregistered entity.
In its opinion and order, the CFTC asserted that the clear language of the CFTC's reparations jurisdiction under Section 14 extends to "any person who is registered under this chapter." Further, the CFTC stated that the scope of Section 14 does not require an individual to be "both registered and acting in the capacity in which they registered," saying that "in light of the clear statutory language, the text does not support inferring this additional jurisdictional threshold."
Consistent with this view, the CFTC reversed the dismissal of a case brought against a registered individual who was alleged to have committed a violation while acting on behalf of a non-registered entity and remanded the matter for further proceedings.
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