Overview
- The Division of Enforcement has rescinded its February 2025 advisory and removed the prior multi‑tier cooperation and mitigation‑credit matrix in favor of a new, factor‑based policy.
- The policy establishes a five‑factor path to declination that requires a voluntary, prompt self‑report, full cooperation, timely remediation, full restitution or disgorgement when appropriate, and the absence of preclusive aggravating circumstances.
- The Division sets explicit partial‑credit penalty ranges for cases that fail to meet declination: large reductions (typically 50–75%) where self‑reporting is insufficient, 25–75% where aggravating factors block declination, and up to 25% for limited cooperation.
- Voluntary self‑reports must disclose all material non‑privileged information promptly and receive a narrow safe harbor for good‑faith inaccuracies that are corrected; full cooperation requires document preservation, production and staff interviews.
- The move from a quantitative matrix to a discretionary, qualitative test raises the stakes for senior managers and compliance teams to act quickly on misconduct, design clear remediation and restitution plans, and watch for unresolved questions such as the treatment of annual‑report disclosures and use of compliance monitors.