Skip to main content
Menu Icon
Close

InfoBytes Blog

Financial Services Law Insights and Observations

CFTC Orders Large Financial Institution to Pay for Supervision Failures

Securities Enforcement CFTC Financial Institutions Compliance Settlement

Securities

On September 28, the Commodity Futures Trading Commission (CFTC) announced a concurrent filing and settling of charges against a large financial institution/clearing firm (Firm) for failing to adequately supervise fee processing. The Order alleges that between 2009 and 2016, the Firm did not implement and maintain adequate procedures and systems that could account for and help prevent the risk of overcharging customers for exchange and clearance fees. In 2015, according to the Order, the Firm modified its processes to prevent future overcharges to customers.

The settlement requires the Firm to pay a $500,000 civil penalty.