Compliance Bricks and Mortar for April 12


These are some of the compliance-related stories that recently caught my attention.

Ex-SEC Enforcement Chief Defends ‘Neither Admit or Deny’ Settlements by Emily Chasan is’s CFO Journal

“By admitting wrongdoing in the government investigations, which companies might well be prepared to do, they face a great deal of liability on the civil side and, in fact, the admissions may well be tantamount to conceding liability on the civil side,” Mr. Khuzami said. Those suits often seek damages well in excess of an SEC settlement, he said.

Hedge Fund Survey Shows Misconduct Believed to be Widespread by Bruce Carton in Compliance Week

A recent survey of hedge fund professionals indicates that misconduct is widespread in the industry, and that a very large percentage of professionals in the industry are prepared to report wrongdoing under a program such as the SEC’s new whistleblower program under Dodd-Frank.

Measuring Tone at the Top by Michael Volkov in Corruption, Crime & Compliance

The importance of tone-at-the-top is significant. A 2009 research report conducted by the National Business Ethics Survey found that in strong ethical cultures, the pressure to commit misconduct was reduced from 16 percent to 4 percent; rates of misconduct were reduced from 77 percent to 40 percent; failure to report misconduct was reduced from 44 to 27 percent.

The question then is how do you measure the internal perception of your company’s tone at the top? There are a number of possible measurements: ….

Will Compliance Officers’ New Favorite Tool Be … Google Glass? by Bruce Carton in Compliance Week

Given that Google Glass can, among many other things, allow the user to record conversations and take photos or video, Magrann-Wells says that perhaps it is time for banks to start forcing traders to strap computers on their heads if they want to reduce the risks associated with rogue traders

Stages in a Bubble by Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University