Compliance Bits and Pieces for September 16

Here are some recent compliance related stories that caught my attention:


How do You Evaluate a Risk Assessment? by Tom Fox

What is the amount of risk that your company is willing to accept? Before you even get to this question how does your company assess risk and subsequently evaluate that risk?

CEO pushes Reg FD limits on Twitter by Dominic Jones in IR Web Report

I applaud Meckler’s use of Twitter to communicate with investors. In an era where institutional investors spend billions annually to glean important information through private access to company executives, Twitter and other new media channels democratize access for all and can help to rebuild public confidence in company executives and the capital markets.

SEC Charges Former Consulting Executive and Friend with Insider Trading Ahead of Biotech Takeovers

The SEC alleges that Scott Allen learned confidential information in advance of the acquisitions of Millennium Pharmaceuticals Inc. and Sepracor Inc. through his work at a global consulting firm that was advising the acquiring Japanese companies as they made cash tender offers. Allen allegedly tipped his longtime friend John Michael Bennett, an independent filmmaker who had previously worked at a Wall Street investment bank, as each acquisition took shape. On the basis of the nonpublic information, Bennett purchased thousands of dollars in call options in the companies and also tipped his business partner at the independent film company they co-own. The insider trading by Bennett and his tippee generated more than $2.6 million in illicit profits. Allen received cash from Bennett in exchange for the tips.

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