CFTC Rescinds No-Deny Policy in Enforcement Settlements
CFTC rescinded its Appendix A policy barring settlements where defendants deny allegations, expanding settlement flexibility.
The CFTC aligned with most federal agencies by removing the requirement that defendants admit allegations to settle. This change provides greater flexibility in resolving enforcement matters and may accelerate settlements while reducing litigation costs.
Changes the strategic calculus for defending CFTC enforcement actions and affects expected resolution paths and disclosure obligations.
Action Required
Reassess enforcement defense strategy and settlement playbooks given expanded options to resolve CFTC actions without admissions.
Material shift in CFTC enforcement posture directly relevant to legal, compliance, and litigation risk management.
Enforcement risk: update settlement decision frameworks reflecting CFTC's neither-admit-nor-deny option; revisit reserves and disclosure assessments for pending matters.
“The CFTC rescinded a policy codified in Appendix A to Part 10 stating it will not accept settlement offers where the defendant continues to deny allegations, aligning with most federal agencies and granting more settlement flexibility.”