Pump and Dump Cryptocurrency

Cryptocurrency is a lawless land. Ten days ago, the Securities Exchange Commission and the Commodities and Futures Trading Commission issued a joint statement on virtual currency: “When market participants engage in fraud under the guise of offering digital instruments – whether characterized as virtual currencies, coins, tokens, or the like – the SEC and the

Weekend Reading: The Undoing Project

I have read most of the books of Michael Lewis. When The Undoing Project came out last year, I grabbed a copy to read right away. Mr. Lewis picks the story of Israeli psychologists Daniel Kahneman and Amos Tversky who created the field of behavioral economics. Their work came to the attention of Mr. Lewis after

Compliance Bricks and Mortar for January 26

These are some of the compliance-related stories that recently caught my attention. Say on Pay: Is It Needed? Does it Work? by Stephen F. O’Byrne In this article, we’ll show that there is substantial evidence that directors do a poor job overseeing executive pay and that directors have weak incentives to pursue shareholder interests in

Federal Shutdown and Compliance

With Congress showing more of its ineptitude, it was unable to pass spending legislation over the weekend. There are reports of limited impact over the weekend. With today’s start of the work week, thousands of federal employees will be home instead of doing their jobs. The Securities and Exchange Commission is still operational. At least

Compliance Bricks and Mortar for January 19

These are some of the compliance-related stories that recently caught my attention. Financial Institutions Are Playing Catch-Up in AML and Sanctions Compliance by Michael Volkov A recent survey of financial institutions conducted by Alix Partners on AML and Sanctions compliance (here) contains informative results that support some of my general concerns about ethics and compliance

The SEC Administrative Law Judges Are Heading to the Supreme Court

The use of administrative law judges by the Securities and Exchange Commission has been strained since the jurisdiction was expanded under Dodd-Frank. There have been a series of cases challenging the ALJs under the the Appointments Clause of the Constitution. The problem was that the judges were appointed by an internal panel instead of by the

Full Speed Ahead for the SEC

Commissioners Hester M. Peirce and Robert J. Jackson, Jr. are, According to Jay Clayton’s math the 96th and 97th Commissioners of the Securities and Exchange Commission after being sworn in last week. It’s been two years since the SEC has been at full strength. Perhaps this means that rule-making will proceed ahead. Based on the

Compliance Bricks and Mortar for January 12

These are some of the compliance-related stories that recently caught my attention. Five Things to Think About Before a Surprise SEC Exam by Joshua M. Newville, Robert E. Plaze, Christopher Wells and Alexandra V. Bargoot If a team from the SEC arrives at your office and says, “We are conducting an on-site examination and would

The 7-11 Compliance Conondrum

Immigration and citizenship employee compliance requirements are fairly straightforward, although awkward. You can’t usually ask whether or not a job applicant is a United States citizen before making an offer of employment. But you do need to verify the identity and employment eligibility of all employees, by completing the Employment Eligibility Verification (I-9) Form, and