NEW YORK, Oct 17 (Reuters) - The U.S. Commodity Futures Trading Commission's top cop on Tuesday said he wants to "dispel this myth" that the agency goes easy on wrongdoers, detailing new policies aimed at hiking the potential costs of marketplace misconduct.
The CFTC, which oversees commodities and swaps markets, is planning to levy stiffer penalties on repeat offenders, push for admissions of guilt, and impose third-party monitors when needed to oversee remediation efforts, enforcement director Ian McGinley said in prepared remarks.
"We don't aim to be friendly or unfriendly when it comes to our markets; we aim to be effective in achieving accountability and minimizing future misconduct," McGinley said in remarks prepared for a New York University event.
The push to toughen penalties follows similar efforts by the Justice Department under President Joe Biden, which has also sought a stronger tone when policing corporate crime.
The CFTC's new guidance, published on Tuesday, details the agency's plan to make recidivism an "aggravating factor" for increasing penalties. Previous violations, the time between offenses and overlapping management will be considered, the CFTC said.
The regulator also plans to impose a third-party monitor in situations where misconduct is pervasive or the CFTC "lacks confidence" that a firm can remediate issues without help, it said.
"For many years, the CFTC—and many other agencies—have resolved most matters on a no-admit, no-deny basis," McGinley said.
But such resolutions will no longer be the default, he said.
Democratic Commissioner Christy Goldsmith Romero, who has pushed for such changes, praised the new guidance in a statement.
"A strong enforcement program that achieves accountability, justice, and deterrence, results in greater market integrity and investor confidence," she said.
(Reporting by Chris Prentice; Editing by Anna Driver)
