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Securities and Exchange Commission (SEC) Chief Compliance Officers Personal Liability

Foley & Lardner LLP

SEC Intensifies Scrutiny of Chief Compliance Officers

Foley & Lardner LLP on

Two recent SEC enforcement actions serve as a sharp reminder that Chief Compliance Officers (CCOs) can face personal liability for what they do – or fail to do – in the course of regulatory examinations for registered...more

Proskauer Rose LLP

SEC Cites Falsified Compliance Records in Two Recent SEC Settlements with CCOs

Proskauer Rose LLP on

Two SEC enforcement actions from earlier this month, each including charges against a firm’s Chief Compliance Officer in their personal capacity, underscore the importance of maintaining accurate records and upholding...more

BakerHostetler

Culture, Cooperation and CCO Liability: SEC Enforcement Director Gurbir Grewal Gives Keynote Address at New York City Bar...

BakerHostetler on

On October 24, SEC Enforcement Director Gurbir Grewal addressed compliance professionals at the New York City Bar Association’s 2nd Annual Compliance Institute. His remarks focused on three topics: creating “a culture of...more

Society of Corporate Compliance and Ethics...

[Webinar] Navigating CCO Liability risks: Tips for staying out of the SEC’s Crosshairs - October 12th, 12:00 pm - 1:30 pm CT

Learning Objectives: - CCO liability can be a complex yet nebulous concept to navigate. Therefore, it’s important to understand how CCO liability is being defined by regulating bodies. - Mitigating the risks of CCO...more

Latham & Watkins LLP

When Are CCOs on the Hook? FINRA Offers Guidance on CCO Liability

Latham & Watkins LLP on

Guidance clarifies assessment of liability under Rule 3110, including designation as supervisor, application of reasonableness standard, and factors for and against charging compliance officials. On March 17, 2022, the...more

Burr & Forman

FINRA Clarifies CCO Supervisory Liability

Burr & Forman on

In the securities industry, regulators like to say that the compliance professionals are their “partners.” But every so often, those regulators charge one of their compliance partners with rule violations. The compliance...more

Vinson & Elkins LLP

NYC Bar Releases Framework For CCO Liability

Vinson & Elkins LLP on

In recent years, the Securities and Exchange Commission (the “SEC”) has increasingly brought enforcement actions against chief compliance officers (“CCOs”) in their personal capacities. On June 2, 2021, the New York City Bar...more

BakerHostetler

SEC Commissioner Peirce Delivers a Speech on Defining the Parameters of CCO Liability

BakerHostetler on

The question of how to define the parameters of personal liability for compliance officers in the financial services industry has been around for several years. In a 2015 speech, then-SEC Enforcement Director Andrew Ceresney...more

Mintz - Securities & Capital Markets...

The New York City Bar Association Goes to Bat for Compliance Officers

The New York City Bar Association Compliance Committee (“Committee”) recently issued a report encouraging financial regulators to provide a clear framework for when compliance officers may be held personally liable for the...more

Eversheds Sutherland (US) LLP

Recent guidance brings OFAC in line with domestic and global compliance trends

On May 2, 2019, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued guidance titled “A Framework for OFAC Compliance Commitments” (Guidance), providing direction regarding what OFAC considers to...more

Thomas Fox - Compliance Evangelist

Up Close and Personal: Individual CCO Liability – Part I

A horse is a horse, of course, of course, and no one can talk to a horse, of course. That is, of course, unless the horse is the famous Mister Ed. Those lines were the opening verse to the theme song of the TV...more

McGuireWoods LLP

SEC Enforcement Chief Andrew Ceresney Discusses CCO Liability

McGuireWoods LLP on

On November 4, 2015, Andrew Ceresney, director of the Securities and Exchange Commission’s (SEC’s) Division of Enforcement (Enforcement Division), delivered the keynote address at the 2015 National Conference of the National...more

Thomas Fox - Compliance Evangelist

FCPA Compliance and Ethics Report-Episode 172-Scott Killingsworth on Personal Liability of CCOs

In this episode I visit with Scott Killingsworth on the recent SEC enforcement action in the SFX matter. In that case, the SEC held the CCO personally liability. We discuss the underlying facts, prior SEC pronouncements the...more

NAVEX

2015 Trends: #7 Crime and Punishment

NAVEX on

On the accountability and punishment front, three trends bear watching: 1) Deferred Prosecution Agreements (DPAs) DPAs and Non-Prosecution Agreements (NPAs) allow prosecutors to require corporate reforms and...more

Thomas Fox - Compliance Evangelist

FCPA Compliance and Ethics Report-Episode 122-with Matt Kelly on Alstom, Avon and Petrobras

In this episode, Compliance Week Editor-in-Chief Matt Kelly and I discuss the Avon and Alstom FCPA enforcement actions and then take a look at the ongoing Petrobras corruption scandal and what it means for Brazil. ...more

McGuireWoods LLP

SEC Seeks Serious Penalties Against Sands Brothers and its Senior Officers for Alleged Repeated Custody Rule Violations - Former...

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On October 29, 2014, the SEC announced that it had instituted administrative proceedings under the Investment Advisers Act of 1940 against Sands Brothers Asset Management LLC (Sands Brothers), its two co-founders and the...more

Stinson - Corporate & Securities Law Blog

When Will The SEC Bring An Action Against A Chief Compliance Officer?

In a couple of speeches at Compliance Week 2014, SEC officials spoke of when it would be appropriate to bring an enforcement action against a Chief Compliance officer, or CCO. SEC Commissioner Kara M. Stein said “If...more

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