On December 1, the CFTC announced a final rule amending its Rules of Practice and Rules Relating to Investigations. Acting Chair Caroline Pham stated the revised rules intend to “enhance the transparency of the Commission’s enforcement actions” and “enhance due process when the Division of Enforcement notifies persons who may be named in an enforcement action (Wells Process).”

The amendments included: (i) clarifying the definition of adjudicatory proceedings; (ii) removing references to obsolete regulations and facsimile communications; (iii) clarifying that the CFTC may accept settlement offers by order; (iv) establishing new requirements for the content and objectivity of memoranda submitted to the CFTC when recommending settlements; and (v) revising procedures for Wells notices and submissions, including requiring that notice of potential charges and supporting facts be provided, and expanding the minimum time for a Wells submission from 14 to at least 30 days.

The CFTC noted that the revised rules require the Division of Enforcement’s recommendation memoranda to be objective, comprehensive and supported by citations to evidence and legal authorities. The rules also required that all Wells submissions be promptly shared with the CFTC, and that written statements from potential respondents be included in the administrative record.