These are some of the compliance-related stories that recently caught my attention.
Whistle-Blowing Insiders: ‘Game Changer’ for the S.E.C. by Peter Henning in DealB%k
Since the program’s creation in 2011, the S.E.C. has received more than 14,000 tips, including almost 4,000 last year. That number falls well short of the original estimate of 30,000 submissions each year, but quality is far more important than quantity. Not surprisingly, agency officials heap praise on the program. Mary Jo White, the S.E.C. chairwoman, called it “a game changer for the agency,” while the director of the enforcement division, Andrew J. Ceresney, said that whistle-blowers “had a transformative impact.” [More…]
Tribute to Star Trek and Anti-Corruption Programs by Tom Fox in FCPA Compliance & Ethics
The Original Series, now termed Star Trek – The Original Series (TOS), largely worked because of the interplay of the show’s three main characters, Captain Kirk, Mr. Spock and Dr. McCoy as representations of the Greek terms ethos, pathos and logos.
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All of this dovetails into compliance as well. The three basic tenets of a best practices compliance program are to prevent, detect and remedy. [More…]
Is this the first shot in the SEC’s war against social media? by Joshua Horn in Securities Compliance Sentinel
The SEC can also use this information on an ongoing basis to assess what firms are putting out there on social media. The industry has to assume that the SEC will be doing more with this information than just tucking it away for examination purposes.Core Values
This new rule should incentivize you to review your social media policy, assuming that you have one. If you do not have one, you need to have one prepared. [More…]
Is This The SEC Or The Lotto? by Keith Paul Bishop in California Corporate & Securities Law
The SEC’s total payout is impressive, but the number of payees is extremely small. According to the SEC, awards were paid to only 33 persons. Moreover, 77.6% of the payout, or $83 million, went to just 4 whistleblowers. From inception through fiscal 2015, the SEC received a total of 14,116 whistleblower tips and made payments to 22 persons. Based on these numbers, the probability of receiving an award is 0.00155. In comparison, the California Lottery posts the odds of winning $10 on its $1 “Set For Life” Scratchers game at 0.00962, or more than 6 times better. [More…]
Joe Murphy to courts and regulators: Stop undermining compliance by Joe Murphy in the FCPA Blog
But there is a nasty little secret behind this conclusion. The legal system, which is supposed to help prevent business crime, actually undermines company compliance efforts. Instead of providing substantial incentives and recognizing the value of our work, there are strong undercurrents that undermine our efforts. [More…]
