CFTC’s New Cooperation Policy Is a Break From the Past (Part Two of Two), Hedge Fund Law Report

Hedge Fund Law Report quoted partners Robert Schwartz and Stacie Hartman in an article examining the US Commodity Futures Trading Commission (CFTC) Division of Enforcement’s new cooperation policy and its potential implications for self-reporting and enforcement resolutions.

Rob and Stacie discussed how the policy marks a meaningful shift from prior CFTC guidance by establishing a clearer path to declinations while offering stronger incentives for cooperation. Rob noted, “The biggest difference between the Advisory and the Policy is that declination is no longer treated as a unicorn. The old policy told you how big a discount you could negotiate based on various factors, but the new one tells you how to walk away clean if you go all-in on cooperation.” Stacie emphasized that firms should balance prompt reporting with careful internal review, explaining, “Market participants should do enough work to determine whether there is actually an issue and its scope.”

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