Rule 204A-1 under the Advisers Act requires investment advisers to adopt a code of ethics. Adoption means establish, maintian and enforcing a written code. At a minimum, the code must include: (1) A standard (or standards) of business conduct that you require of your supervised persons, which standard must reflect your fiduciary obligations and those … Read more »
Information for Newly-Registered Investment Advisers
The Staff of the Securities and Exchange Commission’s Division of Investment Management and Office of Compliance Inspections and Examinations put together an information overview for Newly-Registered Investment Advisers. It is intended to assist newly-registered investment advisers in understanding their compliance obligations with respect to these provisions. This information sheet also provides information about the resources … Read more »
FCPA Allegation Against McCain Fundraiser
Republican fundraiser Harry Sargent III is subject to a suit from Supreme Fuels that Sargent’s company International Oil Trading Company made illegal payments to Jordanian officials. IOTC has an exclusinve license to move military fuel through Jordan. IOTC’s response, according to the NBC News Investigates story: . . .in an email to NBC News, a … Read more »
FinCEN Proposes Regulatory Simplification
In a news release, the Financial Crimes Enforcement Network (FinCEN) announced the publication of a proposal to simplify its rules and regulations by centralizing them in its own new chapter of the Code of Federal Regulations. The current organizational structure of FinCEN regulations developed over many years, during which Congress expanded FinCEN’s authority . As … Read more »
Certification Mark for EU Safe Harbor Framework
The Commerce Department’s International Trade Administration (ITA) has developed a certification mark for the U.S.-European Union Safe Harbor Framework. The mark may be used by companies on their websites to signify that they have self-certified compliance with the provisions of the Safe Harbor Framework. To display the certification mark, you must follow the Safe Harbor … Read more »
FTC Will Grant Six-Month Delay of Enforcement of ‘Red Flags’ Rule
The FTC announced that they will suspend enforcement of the new “Red Flags Rule” until May 1, 2009, to give creditors and financial institutions additional time in which to develop and implement written identity theft prevention programs. The Identity Theft Rules are found at 16 C.F.R. Part 681.2. The FTC published a FTC Business Alert … Read more »
PCAOB Standard No. 5
The Public Company Accounting Oversight Board released Auditing Standard No. 5 – An Audit of Internal Control Over Financial Reporting that is Integrated with an Audit of Financial Statement (.pdf) on June 12, 2007. The standard was approved by the SEC on July 25, 2007 and became effective for audits of fiscal years ending on … Read more »
SEC Prosecutions under the Foreign Corrupt Practices Act
According to Linda Chatman Thomsen, director of the SEC’s Division of Enforcement, in a Forbes Article [The SEC in 2008: A Very Good Year?], the SEC filed 15 FCPA cases in 2008. Since January 2006, the SEC has brought 38 FCPA enforcement actions. That number is more than were brought in all prior years combined … Read more »
Thinking About Training
Jeffrey M. Kaplan and Rebecca Walker, partners in the law firm of Kaplan & Walker LLP wrote an article Thinking About Training in the March/April 2008 edition of Ethikos. The goals of training—to enhance employees’ understanding of the law and company policy and promote ethical business conduct—will not be achieved if training is not comprehensible … Read more »
Email Etiquette and Compliance
Lots of hallway conversations have turned into email and instant messaging conversations. There are lots of problems with that. First, is just the lack of human interaction. Humans are social and need to meet face-to-face. Along with that is the limited ability to add tone, sarcasm and other elements of conversation into the written word. … Read more »