Compliance Bricks and Mortar for September 22

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


Other People’s Money: SEC Disgorgement After Kokesh by Daniel R. Walfish in NYU’s Compliance & Enforcement

 Kokesh held that the disgorgement remedy in SEC enforcement actions is a “penalty” for purposes of the five-year limitations period for the “enforcement of any civil fine, penalty, or forfeiture.” 28 U.S.C. § 2462. Many have assumed, on the basis of a footnote in Kokesh, that courts will soon be considering whether they have authority to order disgorgement at all in SEC enforcement actions. That issue certainly lurks, but I suspect that courts first will revisit the proper scope of the remedy, including whether a court may force a defendant to “disgorge” ill-gotten gains that the defendant did not personally receive but that went to third parties, such as individuals and entities associated with the defendant. [More…]


Anti-Fraud Triangle Paper by Matt Kelly in Radical Compliance

As devout Radical Compliance readers might already know, from time to time I have written about something I call the Anti-Fraud Triangle—a method of assessing misconduct risk in your organization, based on the Fraud Triangle that auditors have used for decades to understand fraud risk.

Well, I just published a longer white paper on the Anti-Fraud Triangle with Workiva, and hosted a companion webcast not long ago on the same subject. If you like geeking out over risk assessment techniques, swing by Workiva’s website and take a look. [More…]


Why It’s Lights Out for LIBOR by 2021 by Jane Rogers in the CLS Blue Sky Blog

In light of LIBOR’s unsustainability, the FCA has decided to replace rather than reform LIBOR, and therefore not to encourage or compel panel banks to continue to contribute quotes and maintain LIBOR after 2021. Market participants are urged to begin planning a transition to replacement rates anchored in observable transactions by 2021. [More…]