These are some of the compliance-related stories that recently caught my attention.
Commission extends post-Lucia stay 30 more days By Rodney F. Tonkovic, J.D.
The SEC has extended a stay of pending administrative proceedings for an additional 30 days. The initial order was issued on June 21, 2018 and stayed pending administrative proceedings until July 23, 2018, or further order. The Commission stated that it finds it prudent to extend the stay until August 22, 2018, or further order of the Commission (In re Pending Administrative Proceedings, Release No. 33-10522, July 20, 2018). [More…]
Tippees and Tippers: The Impact of Martoma II by John C. Coffee, Jr. in the CLS Blue Sky Blog
This is a column for insider trading junkies—a special breed who love all the nuances in this very nuanced subject. Late last month, a Second Circuit panel did something fairly unusual: It withdrew a 2017 decision and substituted a new opinion with a new rationale (but still with the same 2-1 division on the panel). The new decision in United States v. Martoma[1] has a less sweeping and more defensible rationale but still deviates from the law in other circuits. In addition, it has some nuances that future cases are certain to explore. Chief among these is the status of gossip: Can it be viewed as a “gift” with the tipper constructively trading and distributing the proceeds to the tippees? [More…]
Loyalty and conflicts of interest by Jeff Kaplan
Movie mogul Samuel Goldwyn famously said “I’ll take fifty percent efficiency to get one hundred percent loyalty.” But too much loyalty may be bad for reasons that go beyond inefficiency, as indicated by President Trump’s call for then FRI director Comey to be loyal to him. [More…]
Lessons in AI and Data for Compliance from the Houston Astros by Tom Fox
Yet all was forgotten and forgiven with the World Series win. It also turns out my razzing had very little impact on the Astros as now the story of how the Astros went from literally the worst team ever in baseball to World Series Champions has been chronicled by Sports Illustrated writer Ben Reiter in his book “Astroball: The New Way to Win It All”. The book tells the story of how two persons had a vision of using data analytics to literally change the game of baseball. The two men were Jeff Luhnow, the former Director of Scouting for the St. Louis Cardinals, and former NASA rocket scientist Sig Mejdal, who became Luhnow’s assistant at the Astros. Team owner Jim Crane had the foresight to buy into Luhnow’s vision and the wherewithal to put up with people like me who were unpitying in their criticism of the Astros and their plan. It turns out they did have a plan and, more importantly, they executed it. [More…]
Kristin Snyder Named Deputy Director of OCIE
Ms. Snyder has been with the SEC for 15 years. She has served as the Co-National Associate Director of OCIE’s Investment Company/Investment Adviser examination program since August 2016 and as the Associate Regional Director for Examinations in the SEC’s San Francisco office since November 2011. She will continue in both of these roles while also assuming this additional leadership role in OCIE. As Deputy Director, Ms. Snyder will oversee many of the office’s strategic initiatives and serve as the regional advisor to OCIE Director Peter B. Driscoll. [More…]
You Want What?: Responding to Individual Requests Under the GDPR by Jeremy Feigelson, Jane Shvets, and Christopher Garrett
With the EU General Data Protection Regulation (“GDPR”) in force for less than two months, many companies are already experiencing an increase in requests from individuals seeking to obtain a copy, or request correction or erasure, of their personal data under Articles 15 to 17 of the GDPR.
Do we have to respond?
Yes. A response is required even if the response is that the company will not honour the request because a relevant exemption applies.
[More…]
Pan Mass Challenge
On Pan-Mass Challenge weekend, August 3 – 5, I will bike across Massachusetts to raise money for life-saving cancer research and treatment at Dana-Farber Cancer Institute. 100% of your donation will go to cancer research and treatment at Dana-Farber Cancer Institute through its Jimmy Fund. I have made a personal commitment to raise $8000.00. I hope, that as a reader of Compliance Building, you will support my fundraising effort. You can donate through any of the following links:
Thank you,
Doug
