Posts Tagged ‘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 MoreGoldman Compliance Officer Busted on Insider Trading
A senior compliance analyst at Goldman Sachs has been charged with insider trading by the SEC, which says the man racked up more than $470,000 ill-gotten profits by trading in brokerage accounts held under his parents’ names. The man, Jose Luis Casero Sanchez, worked in the control room of Goldman’s offices in Warsaw, Poland, from…
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 MoreCruise Lines Face Covid-19 Compliance Squeeze
Royal Caribbean International has agreed to an exhausting set of criteria from the Centers for Disease Control so the cruise line can evacuate its employees from ships stuck at sea — including the risk of civil and criminal penalties for senior executives should Royal Caribbean bungle the task. That certainly takes the importance of running…
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 MoreFeds: SEC Staffer Stole Data to Land CCO Role
Oh good lord: Federal prosecutors have indicted a former SEC enforcement attorney with stealing information from the agency while he worked there — so he could set himself up as chief compliance officer of a private equity firm under SEC investigation. Michael Cohn, chief compliance officer of GPB Capital Holdings, was charged in federal court…
Read MoreNJ Transit ex-CCO Files Whistleblower Case
The former chief compliance officer at New Jersey Transit filed a federal whistleblower complaint against the agency last week, the latest twist in a drama that has irritated New Jersey commuters for months. The ex-compliance officer, Todd Barretta, filed his complaint with OSHA on Jan. 10, claiming whistleblower status under the Federal Rail Safety Act.…
Read MoreAt What Cost Dishonesty? For VW Exec, Seven Years
Last week a federal judge in Michigan sentenced Volkswagen’s former head of environmental compliance in the United States, Oliver Schmidt, to seven years in prison for his role in VW’s emissions cheating scandal. That’s a tough sentence for a compliance officer. And Schmidt deserved every day of it. As far as the compliance community should…
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