The Massachusetts Secretary of the Commonwealth has been investigating hedge fund hotels. Start-up hedge fund managers receive reduced-rent office space in return for send their trading business to the landlord. UBS AG has agreed to pay $100,000 to settle charges that it failed to disclose the relationship. Galvin charged there was a conflict that harmed … Read more »
The London Olympics and the Bribery Act
The London Olympics in 2012 will be a test of strength, agility and endurance. That’s just be for the corporate sponsors trying to comply with the UK’s Bribery Act. Unlike the US Foreign Corrupt Practices Act, the UK’s Bribery Act applies equally to payments made to foreign government officials as it does to payment made … Read more »
Will Cash Incentives for Whistleblowing Undermine Compliance Programs?
Section 922 of the Dodd-Frank Wall Street Reform and Consumer Protection Act provides an expanded whistleblower program that allows the whistleblower to get part of the money paid to the SEC for the violation. After several years of encouraging the development of internal complaint hotlines and compliance programs, Congress seems to now be encouraging a … Read more »
Santa Claus and Corruption
Even Santa Claus may have to face bribery and corruption on journey to deliver presents. What do you do when faced with a border guard demanding something on the side? A funny video take on the issues from Transparency International: For those of you who celebrate it, Merry Christmas. Read more »
Business Ethics and Term Paper Mills
Having someone else write you college term paper is cheating. There is no ethical debate. If you use one of these services you are passing off another person’s work as your own. Since I was in college and law school before the rise of the internet, these services were not easy to find during my … Read more »
Money Laundering Using Trust and Company Service Providers
Trusts and Company Service Providers (TCSPs) can provide an important link between financial institutions and some of their customers. TCSPs have often been used, wittingly or unwittingly, in the conduct of money laundering activities. The majority of TCSPs are established for legitimate purposes, the Financial Action Task Force’s research Shows that some TCSPs are being … Read more »
Email, Warrants and Corporate Email
Inside the company, you can take away your employees expectations of privacy when it comes to email. It has been unclear whether the same is true when it comes to the government inspecting your email. Surprisingly, there has been little law on whether your email would be subject to same protections as your phone calls … Read more »
Compliance Bits and Pieces for December 17
Here are some compliance-related stories that recently caught my attention: Additional Settlements in New York Pension Fund Investigation in the Pay to Play Blog New York State Attorney General and Governor-Elect Andrew Cuomo has announced additional settlements in his investigation of “pay-to-play” practices and conflicts of interest at public pension funds. FTC Gives Guidance on … Read more »
Regulation of Private Fund Advisers at the State Level
The Dodd-Frank Wall Street Reform and Consumer Protection Act raised the level for registration with the SEC and removed the commonly used exemption from registration used by private fund advisers. That means smaller traditional investment advisers will be kicked out of the SEC registration and into the state registration systems. That also means that advisers … Read more »
Corporate Compliance after Dodd-Frank: Dealing with Whistleblower Bounties
Securities Docket produced a webcast “Corporate Compliance after Dodd-Frank: One Voice; How Many Masters?” that focused on the SEC’s proposed new whistleblower rules and their implications for internal controls and compliance programs, investigations, self-reporting incentives and employer/employee relations, including executive compensation and employee reporting responsibilities. The panelists: Byron Egan, Partner Jackson Walker L.L.P. Jeffrey Sone, … Read more »