Division of 

Enforcement

COMMODITY FUTURES TRADING COMMISSION

Three Lafayette Centre

1155 21st Street, NW, Washington, DC 20581

Telephone: (202) 418-5320

Facsimile: (202) 418-5523

www.cftc.gov

ENFORCEMENT ADVISORY

UPDATED ADVISORY ON SELF REPORTING AND FULL COOPERATION

On January 19, 2017, the Division of Enforcement issued two new Enforcement 

Advisories (the “January 2017 Advisories”) outlining the factors the Division will consider in 

evaluating cooperation by individuals and companies in the agency’s investigations and 

enforcement actions.1 Among other things, the Advisories explained that, in evaluating the value 

of cooperation, the Division would consider the “timeliness” of cooperation, including whether 

the company or individual “quickly made appropriate disclosure of the misconduct and notified 

the Division.”2 Through this Advisory, the Division is providing additional information 

regarding voluntary disclosures and the substantial credit companies and individuals can expect 

from the Division if they voluntarily disclose misconduct and fully cooperate with the Division’s 

investigation.

The Division of Enforcement has long sought to promote voluntary compliance with the 

law while at the same time ensuring accountability for companies and individuals that violate the 

law. One way the Division seeks to achieve these dual goals is by providing companies and 

individuals with meaningful incentives to self-report wrongdoing, cooperate with Division

investigations, and, where appropriate, remediate flaws in their controls and compliance 

 

1

See Press Release, CFTC’s Enforcement Division Issues New Advisories on Cooperation (Jan. 

19, 2017), http://www.cftc.gov/PressRoom/PressReleases/pr7518-17. 

2

See Enforcement Advisory: Cooperation Factors in Enforcement Division Sanction 

Recommendations for Companies (Jan. 19, 2017), http://www.cftc.gov/idc/groups/public/ 

@lrenforcementactions/documents/legalpleading/enfadvisorycompanies011917.pdf (Advisory 

for Companies); Enforcement Advisory: Cooperation Factors in Enforcement Division Sanction 

Recommendations for Individuals (Jan. 19, 2017), http://www.cftc.gov/idc/groups/public/ 

@lrenforcementactions/documents/legalpleading/enfadvisoryindividuals011917.pdf.
2

programs.3 

This updated Advisory on self-reporting and full cooperation should provide greater 

transparency about what the Division requires from companies and individuals seeking 

mitigation credit for voluntarily self-reporting misconduct, fully cooperating with an 

investigation, and remediating, as well as what companies and individuals can expect from the 

Division if they meet these requirements. Specifically, if a company or individual self-reports, 

fully cooperates, and remediates, the Division will recommend that the Commission consider a 

substantial reduction from the otherwise applicable civil monetary penalty. Consistent with the 

January 2017 Advisories, the Division may recommend a reduced civil monetary penalty even 

where a company or individual did not self-report wrongdoing but otherwise fully cooperated 

with the Division’s investigation and remediated deficiencies in its compliance or control 

programs. But, as this Advisory makes clear, the Division will reserve its recommendations for 

the most substantial reductions in civil monetary penalty for those instances where a company or 

individual has self-reported the misconduct and fully cooperated with the Division’s 

investigation and remediated.

The Division expects that this Advisory will encourage companies and individuals to 

detect, report, and remediate wrongdoing, thus increasing voluntary compliance with the law. At 

the same time, the Division expects that this Advisory will provide it with additional avenues to 

learn about misconduct, thus increasing the Division’s ability to prosecute wrongdoers and 

promoting accountability for those who violate the law.4 

Requirements for full self-reporting and cooperation credit:

1. Voluntary disclosure to the Division:

 Voluntary disclosure must be made prior to an imminent threat of exposure of the 

misconduct.

 The disclosure must be made to the Division within a reasonably prompt time after 

the company or individual becomes aware of the misconduct.

 

3

“Company” as used in this Advisory means any type of business entity except a sole 

proprietorship.

4

The Division recognizes that the attorney-client privilege and work product doctrine are 

fundamental to the American legal system and administration of justice. The Division does not 

intend to affect or alter these rights in any way by this Advisory.
3

 The disclosure must include all relevant facts known to the company or individual at 

the time of the disclosure, including all relevant facts about the individuals involved 

in the misconduct. 

o The Division recognizes that, at the time of the first voluntary disclosure, the 

company or individual may not yet know all of the relevant facts, or the full 

extent of the misconduct. To encourage voluntary disclosure at the earliest 

possible time, the Division will still recommend full credit for the company or 

individual—assuming compliance with the other requirements—where the 

company or individual made best efforts to ascertain the relevant facts at the 

time of disclosure, fully disclosed the facts known at that time, continued to 

investigate, and disclosed additional relevant facts as they came to light.

2. Full cooperation:

 To receive full credit under this self-reporting program, the company/individual must 

adhere to the terms of the Division’s January 2017 Advisories. 

3. Timely and appropriate remediation of flaws in compliance and control programs:

 Will be fact and circumstance dependent.

Credit: 

 If the company or individual self-reports, fully cooperates, and remediates, the 

Division will recommend the most substantial reduction in the civil monetary penalty 

that otherwise would be applicable. 

o In extraordinary circumstances—for example where misconduct is pervasive 

across an industry and the company or individual is the first to self-report—

the Division may recommend a declination of prosecution.

 In all instances, the company or individual will be required to disgorge profits (and, 

where applicable, pay restitution) resulting from any violations.