In addition to the changing standard for an accredited investor, the standard for a “qualified client” under the Investment Advisers Act is also changing. Section 418 of the Dodd-Frank Wall Street Reform and Consumer Protection Act requires the SEC to increase the standard. SEC. 418. QUALIFIED CLIENT STANDARD. Section 205(e) of the Investment Advisers Act … Read more »
Be the Mayor, not the Sheriff
Are you getting in the way or helping to move your organization forward? Inevitably, compliance professional will need to step in and stop an activity or start a discipline process for someone who broke the rules. That does not have to be the primary focus of the your job, or the compliance profession. Frank Sheeder, … Read more »
How Does Your Hotline Compare?
Does your hotline ring off the hook with complaints? Is it silent? Are the complaints mostly that the employee thinks his boss is a jerk? The Network and BDO Consulting published their 2010 Corporate Governance and Compliance Hotline Benchmarking Report. The 2010 report provides an analysis of compilation of more than 500,000 reports from over … Read more »
Mixed Messages from H-P
On Friday, Hewlett-Packard fired its CEO because he violated the company’s code of conduct. Mark Hurd had submitted inaccurate expense reports. That sounds like a good message from the Board. Anyone can be fired for violating the code. However, Mr. Hurd was given a severance package that may be worth more than $35 million, including … Read more »
Compliance Bits and Pieces for August 6
Here are some recent stories that I found interesting: The FCPA’s Long Tentacles by FCPA Professor One reason is that mere existence of an FCPA inquiry can significantly throw a wrench into a company’s ability to sell itself. Another reason is that mere existence of an FCPA inquiry can cause an analyst to downgrade a … Read more »
SEC Finally Catches Up With Former Deloitte Vice Chairman
Back in November, 2008, Deloitte sued its former vice chairman for trading in securities of the firm’s audit clients. The SEC has filed its case against Thomas Flanagan and included his son, Patrick Flanagan. The SEC alleged Flanagan traded in the securities of multiple Deloitte clients on the basis of inside information that he learned … Read more »
Dealing with Losses From the Madoff Fraud
One of the many repercussions of the Madoff fraud is how to treat investors who had money in his Ponzi scheme. There has been plenty written about how the trustee is treating the direct investors. He is only treating net cash. If you took out more cash than you put in, you are on the … Read more »
The First Attack on the Accredited Investor Standard
Many of the provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act merely provide for future regulatory framework. That it is in part true for the changing definition of “accredited investor” under the Securities Act. The other part is that the definition changed once President Obama signed the bill into law ten days … Read more »
Snow and Ice in August
It’s August, but here in Massachusetts we need to start thinking about snow and ice. Not because of climate change, but because of the Supreme Judicial Court. They just issued a ruling that changes the standard of liability for snow and ice hazards. The standard in the Massachusetts had been that a property owner could … Read more »
Compliance Bits & Pieces for July 30
Here are some recent stories that I found interesting: When Compliance and Legal Functions Collide by Matt Kelly in Compliance Week‘s Big Picture The general counsel is still the boss. Yes, I know, the revised U.S. Sentencing Guidelines say companies should have an independent compliance function, with a chief compliance officer who answers to the … Read more »