Articles Posted in Uncategorized

Earlier this month the National Society of Compliance Professionals, a nonprofit membership organization that supports compliance personnel and programs in the financial services industry, published a report entitled “Firm and CCO Liability Framework.” The report is designed as an aid to compliance professionals and as a proposal to regulators, including the Securities and Exchange Commission, to determine situations in which liability of Chief Compliance Officers should be mitigated.

The SEC has provided its own guidance regarding when CCOs may be held liable, some of which we have highlighted in a previous post. Additionally, the New York City Bar Association’s Compliance Committee released a comprehensive report last year that contains a description of the history of regulatory comments and guidance provided on the issue of CCO liability and proposes its own framework of liability.

The NSCP report was motivated in part by a widespread belief among compliance professionals that financial services regulators have expanded the situations in which CCOs will face liability for firm compliance failures. According to a survey contained in the report, 72% of compliance professionals share that belief. Additional survey results contained in the report include: that 35% of compliance professionals claim to have insufficient resources to adequately carry out the obligation to provide firm training on compliance issues; that 20% claim to have insufficient authority either to enforce or to develop compliance policies and procedures; and that 25% claim to be unable to meaningfully raise compliance concerns to the firm’s senior management.

Continue reading ›

We don’t typically venture into politics in the RIA Compliance Blog except to explain or predict regulatory trends, and this post is no exception. But something happened recently in the political realm that made me want to explain to non-Georgia natives how much we native Georgians really love our state.

In case you haven’t heard, the President of the United States claims that the recent presidential election held here in our home state of Georgia was fraudulent. This past weekend, he telephoned our Secretary of State, Brad Raffensperger, to explain the many reasons for his belief.

Near the end of the call, President Trump informed Raffensperger that his office has a list of about 4,500 people who had moved away from Georgia prior to the 2020 election but voted in the election anyway. Raffensperger’s attorney informed the President that the Secretary of State’s office has investigated the names on that list and has thus far has concluded that all the people on the list once lived in Georgia, moved out of state, then moved back to Georgia legitimately. This response truly perplexed President Trump, who said:

“How many people do that? They moved out, and then they said, ‘Ah, to hell with it, I’ll move back.’ You know, it doesn’t sound like a very normal — you mean, they moved out, and what, they missed it so much that they wanted to move back in? It’s crazy.”

Continue reading ›

Contact Information