Compliance Newsflash – May 22, 2019

May 22, 2019

According to the DOJ & OFAC, Compliance Functions Should Actually Work, not Just Exist

On May 16, 2019, JD Supra stated look around, corporate ethics and compliance officers. We’re suddenly peppered with new signals from the regulatory world about the importance of a strong, empowered compliance function. We see that most obviously in the Justice Department’s new guidelines about evaluating the effectiveness of a compliance program. That guidance expressly says that when a company is in settlement talks for some infraction, prosecutors will consider whether personnel in the compliance function have sufficient seniority, resources, and autonomy to give an affirmative to one of the department’s fundamental questions: “Does the corporation’s compliance program work in practice?”

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SEC Official Insists Reg BI Will Toughen Rules For Brokers

On May 17, 2019, Financial Advisor reported that the Securities and Exchange Commission’s conduct proposal for brokers is already motivating broker-dealers to identify and begin eliminating conflicts of interests, SEC officials and industry executives said at Finra’s annual conference in Thursday. The proposal, known as Regulation Best Interest, “is a big leap over where we are today,” Lourdes Gonzalez, assistant chief counsel for sales practices in the SEC’s Division of Trading and Markets, told hundreds of industry executives in Washington, D.C.

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