Whistling fast and furious: SEC and CFTC continue to issue awards

2016 ◽  
Vol 17 (3) ◽  
pp. 28-30
Author(s):  
Mark Srere ◽  
Jennifer Mammen
Keyword(s):  
Design Methodology ◽  
Securities And Exchange Commission ◽  
Lessons Learned ◽  
Publicly Traded ◽  
Futures Trading ◽  
Content Type ◽  
Publicly Traded Companies ◽  
Compliance Programs ◽  
Commodity Futures Trading Commission ◽  
Practical Implications

Purpose To analyze the recent Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) whistleblower awards and to evaluate what issues may be important for in-house counsel in the future. Design/methodology/approach The article discusses the most recent whistleblower settlements and focuses on lessons learned for compliance. Findings The SEC continues to publicize substantial whistleblower awards in an effort to attract additional whistleblowers and gather information that may lead to successful enforcement actions. In addition, the CFTC, whose corresponding Whistleblower Program has been slow to issue awards has announced that it is ramping up its program. Practical implications Companies should ensure that they have vigorous compliance programs in place to prevent and detect potential securities violations and to respond immediately in order to mitigate penalties that may result from inadvertent violations. Originality/value This article identifies recent awards issued under Whistleblower Programs created under the Dodd-Frank Act and should be of interest to publicly traded companies and all entities regulated by the SEC and CFTC that may be targeted by potential whistleblowers.

The CFTC turns to insider trading enforcement

2016 ◽  
Vol 17 (2) ◽  
pp. 66-69
Author(s):  
Scott Himes
Keyword(s):  
Insider Trading ◽  
Design Methodology ◽  
Futures Trading ◽  
Content Type ◽  
Regulatory Rule ◽  
Commodity Futures Trading Commission ◽  
Trading Activities ◽  
Enforcement Authority ◽  
Practical Implications ◽  
Commodities Markets

Purpose To alert participants in the commodities markets to an important development in the exercise of enforcement authority by the Commodity Futures Trading Commission. Design/methodology/approach Explains a recent proceeding which resulted in the CFTC’s first-ever application of a newly-promulgated regulatory Rule to punish “insider trading” involving the commodities markets. Findings The CFTC has shown that it intends to apply its new Rule aggressively to address insider trading in the commodities markets. Practical implications As a result of the CFTC’s new enforcement approach to regulating insider trading in the areas under its jurisdiction, all participants in the commodities markets must be attuned to the prohibition on insider trading, familiar with actions that might be deemed unlawful insider trading, and act accordingly to avoid improper trading activities. Originality/value Practical guidance for participants in the commodities markets from an experienced attorney with expertise in government enforcement matters.

Sanofi settles FCPA charges with SEC for $25.2 million

2019 ◽  
Vol 20 (1) ◽  
pp. 27-30
Author(s):  
Jennifer Kennedy Park ◽  
Abena Mainoo
Keyword(s):  
Design Methodology ◽  
Securities And Exchange Commission ◽  
Internal Controls ◽  
Healthcare Industry ◽  
Foreign Corrupt Practices Act ◽  
Content Type ◽  
Enforcement Action ◽  
Compliance Programs ◽  
The Us ◽  
Practical Implications

Purpose To explain a recent enforcement action by the US Securities and Exchange Commission (SEC) highlighting risk factors for Foreign Corrupt Practices Act (FCPA) violations. Design/methodology/approach Summarizes the basis of the SEC’s enforcement action against Sanofi for violating the FCPA’s books and records and internal controls provisions, reviews the terms of the SEC’s resolution with Sanofi, explains Sanofi’s remedial efforts and cooperation with the SEC’s investigation, and discusses factors contributing to corruption risks in the healthcare industry. Findings The SEC’s enforcement action against Sanofi, and other recent enforcement actions, underscore the importance of comprehensive anti-corruption compliance programs and strong internal controls across large multinationals and their subsidiaries. Practical implications Companies operating in high-risk industries and markets should regularly assess and address corruption risks. Originality/value Practical guidance from experienced enforcement lawyers.

SEC touts whistleblower award to a compliance professional – use care in responding to reports of potential violations

2015 ◽  
Vol 16 (1) ◽  
pp. 77-78
Author(s):  
Mark Srere ◽  
Mary Beth Buchanan ◽  
Elaine Koch ◽  
Jennifer Mammen ◽  
Tyson A. Johnson
Keyword(s):  
Design Methodology ◽  
Securities And Exchange Commission ◽  
Content Type ◽  
Compliance Programs ◽  
The Us ◽  
Compliance Audit ◽  
Practical Guidance ◽  
Credible Information ◽  
Practical Implications

Purpose – To highlight the first award granted under the US Securities and Exchange Commission Whistleblower Program to a compliance professional. Design/methodology/approach – Explains the first award issued to a compliance professional under the SEC’s Whistleblower program and the rules for issuing such an award. Findings – The SEC has emphasized this award to a compliance professional, noting that individuals performing compliance, audit, and legal functions are on the front lines against fraud and corruption and are often privy to the very kinds of specific, timely, and credible information that can prevent an imminent fraud or stop an ongoing fraud. The SEC’s specific courting of compliance and audit personnel makes it even more important for companies to pay particular attention to complaints raised by those individuals. Practical implications – Companies should continue to take steps to ensure that they have vigorous compliance programs in place to detect potential issues and to respond immediately and effectively to internally reported information. Originality/value – Practical guidance from experienced regulatory and employment lawyers.

Securities regulators’ overlapping priorities provide guidance for examination preparation

2017 ◽  
Vol 18 (1) ◽  
pp. 15-18
Author(s):  
Daniel A. Nathan ◽  
Elizabeth Marshall
Keyword(s):  
Design Methodology ◽  
Securities And Exchange Commission ◽  
Financial Industry ◽  
Content Type ◽  
Compliance Programs ◽  
Key Issues ◽  
Practical Guidance ◽  
Investment Advisers ◽  
Examination Preparation ◽  
Practical Implications

Purpose To summarize and interpret the examination priorities for 2017 published in early January by the Financial Industry Regulatory Authority (“FINRA”) and the Office of Compliance Inspections and Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”). Design/methodology/approach Summarizes some of the most important priorities raised by the OCIE and FINRA in the areas of senior investors, recidivist representatives, product suitability, complex investments and sales practices, cybersecurity, branch offices and anti-money laundering. Findings As in recent years, there is a significant overlap in priorities between the two regulators on issues of elderly investors, recidivist representatives, product suitability, and cybersecurity, among others. Practical implications Registered investment advisers and broker-dealers should note the key issues raised in both letters so that their compliance programs can address them in their policies, procedures, and controls before their next examination. Originality/value Practical guidance from lawyers whose practices focus on securities and broker-dealer enforcement defense.

CFTC harmonization rules: CPOs of RICs benefit from “substituted compliance”

2014 ◽  
Vol 15 (1) ◽  
pp. 17-24
Author(s):  
Daphne G. Frydman ◽  
Raymond A. Ramirez
Keyword(s):  
Securities And Exchange Commission ◽  
Futures Trading ◽  
Content Type ◽  
Investment Companies ◽  
Commodity Futures Trading Commission ◽  
Foreign Corporations ◽  
Investment Advisers ◽  
Sec Regulation ◽  
Asset Managers ◽  
Practical Implications

Purpose – To explain regulatory developments and changes to compliance obligations for asset managers registered with the Commodity Futures Trading Commission (CFTC) as commodity pool operators of registered investment companies. Design/methodology/approach – Provides a general overview of new CFTC rules (Harmonization Rules) that afford relief to commodity pool operators of commodity pools that are registered as investment companies under the Investment Company Act of 1940; describes the specific CFTC disclosure, reporting and recordkeeping requirements that remain applicable to commodity pool operators that are also subject to Securities and Exchange Commission (SEC) regulation by virtue of operating commodity pools that are registered investment companies; discusses reliance on substituted compliance with applicable SEC requirements; outlines the method for claiming relief under the Harmonization Rules; provides guidance for CPOs of RICs that use controlled foreign corporations (CFCs). Findings – CPOs of RICs benefit from “substituted compliance” under the CFTC Harmonization Rules. Practical implications – Explains to investment advisers that have registered as CPOs of RICs the disclosure, reporting and recordkeeping obligations that apply to them, how to take advantage of compliance with SEC requirements in lieu of CFTC requirements, and how to claim relief with respect to certain CFTC compliance obligations. Originality/value – Practical explanation by experienced derivatives and securities lawyers.

CFTC overhauls customer protection requirements

2014 ◽  
Vol 15 (1) ◽  
pp. 25-32 ◽  
Author(s):  
Robert M. Brown
Keyword(s):  
Design Methodology ◽  
Commodity Futures ◽  
Regulatory Regime ◽  
Futures Trading ◽  
Content Type ◽  
Regulatory Response ◽  
Market Participants ◽  
Policies And Procedures ◽  
Practical Implications

Purpose – The purpose of the paper is to summarize the Commodity Futures Trading Commission's (CFTC) recent overhaul of its customer protection rules, which regulate how futures commission merchants (FCMs) and derivatives clearing organizations (DCOs) handle customer funds. Design/methodology/approach – The paper summarizes the most significant aspects of the CFTC's October 30, 2013 customer protection rulemaking, explains FCM and DCO obligations under the new regulatory regime, and sets forth a compliance timeline. Findings – The CFTC's recent overhaul of its customer protection rules impose significant new requirements on FCMs and DCOs in their handling of customer funds. Practical implications – All FCMs and DCOs that handle customer funds should review these new rules and begin putting into place policies and procedures to ensure their compliance as each new requirement comes into effect. Originality/value – The CFTC's overhaul of its customer protection regime is new and significant. FCMs and DCOs need to understand their new obligations under the rules. As these new rules are the CFTC's regulatory response to the events that led to the insolvencies of MF Global and Peregrine Financial Group, these developments also should be of interest to futures and swaps market participants generally.

The role of investment property appraisal in European real estate companies

2020 ◽  
Vol 13 (1) ◽  
pp. 105-122
Author(s):  
Juha Mäki
Keyword(s):  
European Union ◽  
Real Estate ◽  
Design Methodology ◽  
Annual Reports ◽  
Real Estate Industry ◽  
Publicly Traded ◽  
Content Type ◽  
The Real Estate ◽  
Practical Implications

Purpose This paper aims to examine the connection between appraisals of investment properties and earnings properties in companies from two perspectives: what kinds of companies employ the most reputable appraisers and how appraisers produce estimations. Design/methodology/approach The research uses annual reports of European Union (EU) publicly traded real estate companies and examines the period 2007-2016. Findings The contribution of this study lies in establishing that some indicators and features of real estate companies affect the choice of appraiser and also in illustrating differences in the results of property valuations. In short, smaller companies with weaker performance are less willing to use external valuation, and external appraisers produce more conservative estimations for investment properties. Practical implications The research produces beneficial information for investors and other stakeholders interested in the real estate industry. Originality/value This is the first novel study to examine the link between appraisals of investment properties and earnings properties in companies in detail.

Possible key factors for Brazilian publicly traded companies to adopt a sponsorship strategy

2019 ◽  
Vol 12 (4) ◽  
pp. 429-446
Author(s):  
Jessica Nunes de Alcântara ◽  
Gideon Carvalho de Benedicto ◽  
Sabrina Soares da Silva
Keyword(s):  
Design Methodology ◽  
Secondary Data ◽  
Industry Concentration ◽  
Key Factors ◽  
Publicly Traded ◽  
Socially Responsible ◽  
Sport Sponsorship ◽  
Resource Based View ◽  
Content Type ◽  
Publicly Traded Companies

Purpose The purpose of this paper is to identify organizational and industrial characteristics of publicly traded Brazilian firms with sport and cultural sponsorships. Design/methodology/approach Secondary data, as organization variables and industry level variables, were sourced from Economatica®. The data were analyzed using logistic regression. Findings Both size and asset profitability were associated with a sponsorship strategy. Both industry concentration and company size are positively related to both cultural and sport sponsorship strategies. Research limitations/implications The findings in this paper provide support to resource-based view and SPC theories. The notable limitation of the study is the reliance on non-standardized social reporting. Originality/value This paper fulfills an identified need to study the importance for sponsorship to companies’ performance. The adoption of sponsorship strategies has been growing in Brazil and becoming more and more important for sponsor companies’ performance and in developing these industries, sport and creative. Through culture and sports, companies try to add value to their brands, delivering a socially responsible image to the audience.

Parties push to enforce statutory time limits on SEC enforcement actions

2015 ◽  
Vol 16 (3) ◽  
pp. 30-32
Author(s):  
Benjamin Neaderland ◽  
Jared Cohen
Keyword(s):  
Design Methodology ◽  
District Of Columbia ◽  
Securities And Exchange Commission ◽  
Courts Of Appeals ◽  
Content Type ◽  
Time Limits ◽  
Court Of Appeals ◽  
Securities Law ◽  
The Us ◽  
Practical Implications

Purpose – To alert companies and individuals subject to regulation and investigation by the US Securities and Exchange Commission (SEC) of potential arguments to enforce time limits on enforcement actions that have heretofore commonly been ignored. Design/methodology/approach – Analyzes two cases - one recently decided and one pending - in US Courts of Appeals, explains significance of issues at stake. Findings – The Courts of Appeals for District of Columbia Circuit has recently reviewed, and the Court of Appeals for the 11th Circuit will soon decide whether statutory timing provisions effectively remove SEC power to bring enforcement actions past their deadlines, at least in some circumstances. Practical implications – Depending on the outcomes of the cases, companies and individuals may gain a new procedural defense or two against SEC enforcement actions. They may also expect the SEC to respond by more actively seeking tolling agreements, and/or being more cautious in issuing Wells notices. Originality/value – Guidance based on pending decisions interpreting US securities law, may bring regulatory adjustments to agency practice and procedure.

Cryptocurrency regulations will become more variable

2018 ◽  
Keyword(s):  
Securities And Exchange Commission ◽  
Futures Trading ◽  
Content Type ◽  
Securities Law ◽  
The Us ◽  
Commodity Futures Trading Commission ◽  
Regulatory Scrutiny ◽  
Market Capitalisation ◽  
And Control

Subject Cryptocurrency classification. Significance The classification of crypto assets under US securities law is less clear than in Japan, China and South Korea, but a working group comprising senior officials of the US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC) is discussing it. The unclear status of Ethereum’s ether and Ripple’s XRP, the second- and third-largest crypto assets by market capitalisation, is the centre of attention. Impacts Mined crypto assets including bitcoin and litecoin are likely to remain classed as commodities. Ether and XRP are unlikely to be designated as commodities as they were initial coin offerings (ICOs) but also not as standard securities. As ICOs come under increasing regulatory scrutiny and control, more will fail, but a few may achieve notable success.

Sign in / Sign up

Export Citation Format

Share Document