These are some of the compliance-related stories that recently caught my attention.
Anti-Corruption Laws and Other International Risks – What it Means for the Real Estate Industry and How to Protect against Risks by Ropes & Gray
The real estate industry is commonly viewed to be higher risk in light of the numerous government touch points, the heavy reliance on third parties such as joint venture partners or property managers, particularly in emerging or higher risk markets, and the frequency with which bad actors seek to launder ill-gotten gains through the purchase of property. However, as described in more detail below, these risks can effectively be managed by investors with robust compliance controls, including pre-transaction due diligence and post-investment compliance monitoring.[More…]
How Much Is A Whistleblower Waiver Really Worth? by Keith Paul Bishop in California Corporate & Securities Law
Unless someone successfully challenges the SEC’s enforcement position, it is likely that companies will eliminate waivers from their severance agreements. One might hypothesize that companies will reduce severance compensation as a result. But how much is a waiver worth to a former employee? Through fiscal 2015, the SEC paid out $54 million since its whistleblower rules went into effect in August 2011. While that is a sizable sum, only 22 tippers received payment. [More…]
Due Diligence Questions Chief Compliance Officers Should Ask In A Job Interview by Maurice Gilbert in the FCPA Compliance & Ethics Blog
What follows is an aggregate of questions candidates have recently asked management and Boards when being considered for a CCO role with a new employer. The list is unedited and unfiltered – their words to your ears.
Print and save this list. And so that we can all help one another, I hope you will respond below with questions of your own.
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No D&O Insurance Coverage for Costs of Responding to Informal SEC Investigation by Kevin LaCroix in the D&O Diary
Among the most frequently recurring D&O insurance coverage issues is the question of the carrier’s obligation to pay for costs incurred in connection with an informal SEC investigation. Indeed over the years, numerous policy revisions have been adopted in various forms by various carriers to address certain aspects of this issue. Yet the issues continue to arise, as shown most recently in District of Colorado Judge Robert E. Blackburn’s August 4, 2016 opinion (here), in which he held that the D&O policy at issue did not provide coverage for the insured company’s expenses incurred in responding to an informal SEC investigation. The opinion raises a number of issues, as discussed below. [More…]
No More Coffee for You by Adam Turteltaub in the SCCE’s Compliance and Ethics Blog
There’s a lesson to be learned here, other than that we all should avoid running for elected office. It’s that proposed rules, whether they are legislation in a state house or policy in an organization, are never as clear as they appear on paper, and that once they meet the public eye, all kinds of questions are likely to be asked. Worse, all kinds of assumptions are going to be made. [More…]
