FIA has offered comments to the US Federal Regulatory Commission (FERC) regarding a proposed rulemaking that would substantially expand the scope of communications that are subject to FERC’s enforcement authority.
In its comments, FIA acknowledges the importance of truthful and forthright communications with federal agencies, including FERC. However, FIA notes that FERC’s proposed framework for applying a “duty of candor” to nearly all communications with FERC and FERC-regulated entities may have unintended negative consequences for FIA’s members and other market participants that are active in physical derivatives markets regulated by the Commodity Futures Trading Commission. FIA’s comments question whether FERC intended its rule to apply so broadly and urges FERC to incorporate limiting principles that are standard in other federal authorities’ rules governing communications – such as intent and materiality – if it moves forward with a final rulemaking.
