Search results for: cco liability
FINRA’s Olive Branch on CCO Liability
FINRA, the regulator for broker-dealer firms, is trying to ease tensions over chief compliance officer liability with a new alert stressing that FINRA typically will not bring enforcement actions against CCOs personally because compliance officers don’t inherently have a supervisory role at their firms. FINRA published the alert late last week, after several pleas from…
Read MoreAnalyzing the Latest CCO Liability Case
Stop me if you’ve heard this one before: a chief compliance officer faces personal legal liability for compliance failures at his firm, and everyone got into a tizzy over it. Then, upon reading the facts of the case, a more complicated picture emerges that demonstrates just how tricky a subject CCO liability can be. Such…
Read MoreAnother CCO Liability Proposal
The National Society of Compliance Professionals, which represents compliance officers specifically in the financial services world, has released a proposed framework to help regulators understand the threat of chief compliance officer liability and when such liability is or isn’t warranted for a compliance failure. The NSCP released its framework on Monday: a series of nine…
Read MoreProposed: Framework for CCO Liability
The New York City Bar Association has proposed a framework that the Securities & Exchange Commission should follow when deciding whether to charge a chief compliance officer for compliance failures at his or her firm. The framework, announced to the world on Wednesday, addresses points such as when a CCO should be charged for “wholesale…
Read MoreReport Urges Action on CCO Liability
The New York City Bar Association released a report on Tuesday warning that compliance officer liability continues to be a worrisome part of regulatory enforcement, and called for more guidance about when a compliance officer’s conduct can leave him or her in regulators’ crosshairs. The report focused on compliance officers working in financial services firms,…
Read MoreAck! CCO Liability Is Back Again!
Loyal readers of Radical Compliance know that I don’t give much credit to fears of CCO liability for compliance failures. Outside the financial services sector, the risks to a compliance officer are virtually zero, unless you’re grossly negligent or complicit in the misconduct. Within the financial services world, compliance officers do have more worry—and then…
Read MoreEnough About CCO Liability!
Compliance officers should welcome the arrest several days ago of Volkswagen’s head of U.S. regulatory compliance—because, at long last, that action seems to be snapping us out of our misplaced fears of compliance officer liability. The compliance executive in question is Oliver Schmidt, who headed VW’s emissions compliance office here in the United States from…
Read MoreCan We Calm Down Over CCO Liability?
Thank the lord! Yesterday the SEC fined an investment advisory firm and one of its senior managers for failure to prevent insider trading—and did not fault the firm’s chief compliance officer. Now maybe we can all, finally, step back from the fears over CCO liability that have gripped this profession too much. The firm in question…
Read MoreMore Notes on Retaliation Against CCOs
Not long ago I moderated a webinar on retaliation specifically against compliance officers, and two weeks later, I’m still not sure how I feel about it. Yes, it was great to hear all the advice that compliance professionals shared about how to withstand retaliation — but yikes, retaliation against compliance officers is so, so prevalent.…
Read MoreFinancial CCOs Propose SEC Advisory Group
The professional association for compliance officers in the financial services industry has asked the Securities and Exchange Commission to form a Compliance Advisory Committee, so that compliance officers at regulated firms can have a stronger voice in SEC policy matters that might affect them. The National Society of Compliance Professionals, which caters to compliance officers…
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