In Regulatory Wrap for the week to July 12, Jay Hampshire reviews CFTC Commissioner Caroline Pham’s statement on misconduct within the CFTC.
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In this Regulatory Wrap, we evaluate commentary from Commodity Futures Trading Commission (CFTC) Commissioner Caroline Pham, which emphasizes her thoughts on the importance of a strong workplace culture following CFTC misconduct allegations.
1. CFTC staff has been accused of misconduct for making multiple false statements in court over a six-month period
2. Commissioner Pham commented on these misconduct allegations, stating that she has expressed dissent with the CFTC’s process for handling the situation and flagged “multiple instances of personally disparaging remarks” made about parties under investigation previously
3. As opposed to being handled by the CFTC’s Division of Enforcement, Pham conveyed her belief that the case should be reassigned to the Department of Justice to avoid an “inherent conflict of interest”
4. Resultingly, Pham stated that “the culture at the CFTC needs to be reformed” and called for the regulator to take accountability and corrective action
5. Aligning with previous statements from several regulators and hinting at growing priorities, it is expected that conduct and culture will remain top of list to underscore intolerance for misconduct across all levels of the industry
This week’s episode is brought to you by our Senior Content Writer, Jay Hampshire.
In line with concentrations from regulators like the Financial Conduct Authority, conduct and culture is making its way up the list of priorities for U.S. regulators. With regulators finding themselves the subject of misconduct allegations, it is clear that conduct and culture will be under regulators spotlight more than ever before.
