Civil money penalty (CMP)

Civil money penalty (CMP),

Definition of Civil money penalty (CMP):

  1. A civil money penalty is a punitive fine imposed by the Securities and Exchange Commission, which holds primary responsibility for enforcing Federal securities laws.

  2. Civil money penalties are imposed by the Securities and Exchange Commission, and are not limited to securities-law violations. They are typically equal to the gains made from the activity, and the money from these fines goes back to investors who have been victims of securities law violations.

  3. A fine issued in civil court which penalizes a violator who profited from an illegal or unethical action. The penalty is typically equal to the gains made from the activity. For example, a broker who profited $1,000 from circular trading will be required to pay a fine of at least $1,000.

Meaning of Civil money penalty (CMP) & Civil money penalty (CMP) Definition