Compliance Bits and Pieces for October 14

These are some compliance-related stories that recently caught my attention:

A Study of Individual Liability under the Foreign Corrupt Practices Act (.pdf 6 pages)By M. Scott Peeler of Chadbourne & Park LLP

In this Special Report, Scott Peeler reviews lessons and patterns from his review of government initiated civil and criminal FCPA cases filed against individuals since 2005.

The Importance of a Strong Insider-Trading Compliance Program by Bruce Carton in Securities Docket

The short answer to the question of whether public companies have exposure to liability for insider trading by employees is, in theory, yes. But as a practical matter, the reality is that the liability is extremely limited. All public companies are not subject to the same requirements that apply to regulated entities such as broker-dealers and investment advisers. Under Section 15(f) of the Securities Exchange Act of 1934 and Section 204A of the Investment Advisors Act, such regulated entities are specifically required to adopt, maintain, and enforce policies and procedures designed to prevent insider trading. Indeed, regulated entities can be subject to “control person” liability if they “knowingly or recklessly failed to establish, maintain, or enforce” the insider-trading policies or procedures required by these laws.

Short-Term Debt, Rollover Risk, and Financial Crises by Tanju Yorulmazer in Liberty Street Economics