These are some of the compliance-related stories that recently caught my attention.
Firms Withdraw as MAs Ahead of Final Rule by Kyle Glazer in The Bond Buyer
Nathan Howard, an attorney who works with municipal advisors, said the many withdrawals are the result of guidance that has made it more clear who is likely to be an MA in the view of the SEC staff. In recent months, the SEC has published two sets of interpretive guidance in the form of “frequently asked questions.” That guidance explained that firms could be exempted from having to register as MAs under some circumstances, including if an issuer had retained its own independent MA, if the firms were responding to a legitimate request for proposals, or if they were offering certain types of advice permissible for their professions. Bond lawyers, for example, would not have to register as MAs as long as they do not cross the line from providing traditional legal services to providing professional financial advice or holding themselves out to be financial experts.
Immigrants From Latin America and Africa Squeezed as Banks Curtail International Money Transfers by Michael Corkery in Dealbook
As government regulators crack down on the financing of terrorists and drug traffickers, many big banks are abandoning the business of transferring money from the United States to other countries, moves that are expected to reverse years of declines in the cost of immigrants sending money home to their families.
New Article Examines Overcriminalization, Plea Bargaining, And The FCPA Africa Sting Case by Lucian Dervan in the FCPA Professor
The Africa Sting Case is one in which a number of defendants proceeded to trial to challenge the government’s theory of the case. Such challenges, however, have become a rarity in today’s criminal justice system. As the Computer Associates case illustrates, even where the government’s aggressive application of broad criminal statutes draws wide attention, most defendants succumb to the powerful incentives plea bargaining offers to forgo trial.
Ethics Creep by Roy Snell in SCCE’s Compliance and Ethics Blog
My point is simple. If you decide to call something or someone unethical every time you disagree with them, you have broadened the definition of ethics to the point the word is now worthless. If you are a compliance and ethics officer and you focus your attention on social cohesion, overtime, and capital punishment, etc., you will become ineffective. We need to focus on preventing, finding, and fixing business ethics issues not management or leadership strategy.
Image of Brick and Plaster Texture is by David Gunter