Not just a compliance program, but an effective compliance program: SEC, DOJ issue strong reminders

From JD Supra Business Advisor -

“In recent days the Department of Justice and the Securities and Exchange Commission have issued strong messages reemphasizing the importance of effective corporate compliance programs.

Assistant Attorney General Leslie R. Caldwell, speaking at the 10th Annual Compliance week conference in Washington, DC last week, stressed the necessity for companies to design compliance programs “that don’t just look good on paper, but actually work.”

Caldwell warned that although a risk-based approach to compliance may be appropriate, companies “often misdirect their focus to the wrong type of risk,” resulting in reactive, rather than proactive, compliance programs. An effective compliance program, Caldwell says, is “tailored to the unique needs, risk and structure” of the company and focuses on the company as a whole, rather than just those lines of business subject to regulation.”

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The FIFA Corruption Scandal: What Companies Should Take Away

From Risk Management & Crisis Response –

“What can companies take away from the United States Department of Justice’s arrest of several senior FIFA officials last week, and ongoing investigation into corruption in soccer? Indictments were issued against 14 individuals and seven were arrested last Wednesday on charges of racketeering, wire fraud and money laundering conspiracies, among other charges; the DOJ has also indicated more indictments are likely.”

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Cooperating with Regulators? The Pros and Cons

From Wealth Management.com -

“While securities regulators say self-reporting offenses and cooperating with authorities may help advisors and firms get off easier, industry lawyers say there are negative consequences, including reputational damage and costly internal investigations.

When the Justice Department assesses an appropriate resolution in a case, a major determining factor is whether there’s been cooperation with enforcement, said Bill Stellmach, principal deputy chief of the fraud section at the DOJ, during the Practising Law Institute’s enforcement seminar Friday.’

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