ARTICLE
1 May 2025

CFTC Staff Announces New Approach To Enforcement Referrals, But It's No Free Pass

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Milbank LLP

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Milbank LLP is a leading international law firm that provides innovative legal services from 12 offices around the world. Founded in New York over 150 years ago, Milbank helps the world’s leading commercial, financial and industrial enterprises, as well as institutions, individuals and governments, achieve their strategic objectives.
On April 17, 2025, the staff of the Commodity Futures Trade Commission's (CFTC or Commission) Operating Divisions (Division Staff) issued an advisory (the Advisory) announcing criteria for determining whether to refer compliance matters to the Division of Enforcement (Enforcement Staff).
United States Finance and Banking

On April 17, 2025, the staff of the Commodity Futures Trade Commission's (CFTC or Commission) Operating Divisions (Division Staff) issued an advisory (the Advisory) announcing criteria for determining whether to refer compliance matters to the Division of Enforcement (Enforcement Staff). In a nutshell, Division Staff will only refer the most serious, material compliance issues to Enforcement Staff for investigation and possible charges.

This is a welcome development and eliminates the specter of potential charges and fines. But the Advisory seems unlikely to eliminate—or may not even substantially reduce—certain burdens commonly associated with enforcement reviews of compliance matters and introduces new complexities and costs to registered firms' ongoing relationships with and oversight by Division Staff.

Click here to read the full Insight: "CFTC Staff Announces New Approach to Enforcement Referrals, But It's No Free Pass."

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