These are some of the compliance-related stories that recently caught my attention.
Up Close and Personal: Individual CCO Liability – Part I by Tom Fox in FCPA Compliance & Ethics
For when should a CCO have liability and should the regulators, whether in the financial services industry or in the broader anti-corruption world of the Foreign Corrupt Practices Act (FCPA), have such individual liability? While the financial services world is regulated by both the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) they have specific regulations requiring companies they regulate to have anti-money laundering (AML) compliance programs, the FCPA does not have any such requirements, either written directly into the statute or by interpretation therefrom. [More…]
Wall Street Crime: 7 Years, 156 Cases and Few Convictions by Jean Eaglesham and Anupreeta Das in the Wall Street Journal
The Wall Street Journal examined 156 criminal and civil cases brought by the Justice Department, Securities and Exchange Commission and Commodity Futures Trading Commission against 10 of the largest Wall Street banks since 2009. In 81% of those cases, individual employees were neither identified nor charged. A total of 47 bank employees were charged in relation to the cases. One was a boardroom-level executive, the Journal’s analysis found. [More…]
At Swinging Wall Street Parties, the Feds Are Now on the Prowl by Matt Robinson in Bloomberg
Like a skunk at a garden party, the SEC has been moving in on the fun-loving Wall Street conference circuit in hopes of getting a better handle on who’s up to no good in the world of finance. Officials scour attendee lists to spot the biggest players in advance and, properly wearing name tags, schmooze over drinks. Of course, they don’t accept any — that’s a no-no under SEC policy.
The SEC isn’t the only regulator trawling conferences for tips of suspicious conduct. The Commodity Futures Trading Commission was especially transparent about its intentions when it set up a booth in the middle of an industry gathering in March. Attendees at the opulent Boca Raton Resort & Club in Florida were greeted by smiling agency officials handing out metal whistles emblazoned with “CFTC” and mouse pads advertising their toll-free number.[More…]
GE Compliance Finds Simpler is Better By BEN DIPIETRO in the Wall Street Journal
Employees are much more likely to invest the time to read and interact with materials if they are short and simple and clearly written. In connection with our code, we dramatically reduced the length. That not only promoted readability but it helped us digitize the code, so the online version has becomes very popular with our employees, and this has been assisted by its brevity and clear messages. Simplification has allowed us to apply greater focus to how employees interact with the program. [More…]
The SEC, CCOs and Compliance Programs by T. Gorman in SEC Actions
Perhaps the final point is most important. The effective CCO must constantly be asking “What am I missing?” Stated differently, the system must, as the Guide notes, be constantly evaluated and updated. If that is done it can improve the functioning of the business. In addition, if an issue arises which comes to the attention of the SEC or another regulator, the organization will be able to follow the advise of Mr. Cohen – address the issue first by pointing to the effective compliance program of the organization; then discuss the question as an outlier rather than waiting to the remediation stage of the discussion to mention compliance as do many firms. That approach argues for a much more favorable outcome of the regulatory inquiry since compliance is a key question in any charging decision.[More…]
It’s No Accident: Advocates Want to Speak of Car ‘Crashes’ Instead By Matt Richtel in the New York Times
Roadway fatalities are soaring at a rate not seen in 50 years, resulting from crashes, collisions and other incidents caused by drivers. Just don’t call them accidents anymore.
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In April, The A.P. announced a new policy. When negligence is claimed or proven in a crash, the new entry reads, reporters should “avoid accident, which can be read by some as a term exonerating the person responsible.”[More…]
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