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Four Steps to Resolving Your FCPA Compliance Issues

As regular readers of this blog know I often cite the three maxims of Paul McNutly as the basis for a good compliance program. They are the questions that the government will ask when they come knocking: (1) What did you do to prevent it?; (2) What did you find when you looked into it?; and (3) What...

Toyota Quality Control and a Best Practices Compliance Program

In an article in the summer 2011 issue of the Sloan Management Review, entitled, " What Really Happened to Toyota? ", author Robert Cole explored the recent problems of the company and whether these difficulties "throw its legendary manufacturing model into question?" The commentary...

Compliance and Google+

Over the past few weeks, Google+ has exploded as a new social web platform. We had friends on Facebook and followers on Twitter. Now there are Circles on Google+ . What does this mean from a compliance perspective? Not much for right now. Google+ does not seem to present any new issues that...

Who Caught Them? Compliance or the SEC?

The SEC announced they had obtained an emergency freeze against three Swiss-based traders under an allegation of insider trading. The SEC claims that Compania International Financiera S.A., Coudree Capital Gestion S.A., and Chartwell Asset Management Services purchased more than a million common...

The FSA Bares its Teeth: Be Aware of International Enforcement Regimes

While many companies here in the US complain about the enforcement of the Foreign Corrupt Practices Act (FCPA), and are actively seeking to soften its enforcement by lobbying Congress to amend the FCPA, just imagine how they might feel about paying a multi-million dollar fine for a situation in which...

Twitter Fail and Compliance

FINRA has long regulated and limited the ability of broker/dealers to communicate with the public. One of their missions is to protect the investing public from unscrupulous securities brokers. Twitter is a communications tools and any messages posted to Twitter will need to be in compliance. ...

Outsourcing Compliance and the CCO

One of the requirements of registration as a registered investment adviser is the appointment of a Chief Compliance Officer and the establishment of a formal compliance program. The SEC stated that a firm need not hire a new person to be the CCO. However, there will be a substantial time commitment...

The TI Six Step Approach to Implementing or Enhancing a Compliance Program

I often write about what I call the McNulty Maxims of Compliance. I heard them in a presentation by Paul McNulty to the Houston Chapter of the Texas General Counsel Association in my most recent corporate position. They were (1) What did you do to prevent it?; (2) What did you do to detect it?; and...

Jeannette Rankin, Infosys, Ethics and Compliance

Who was Jeannette Rankin and why do we celebrate her today in the context of ethics and compliance? She was the first female to be elected to Congress, as a Representative from Montana in the 1916 elections. In 1917 she was one of 50 votes opposing America's entrance into World War I. She had...

A Proactive Approach to Ensure Advisors Adopt Procedures

The reorganization of the Division of Enforcement which spawned the re-introduction of specialty groups was, in part, designed to focus the resources of the Division and increase efficiency and effectiveness. Three recently filed cases are an example of the results of the reorganization and the creation...

Running the Big Con in DC: Lessons for the FCPA Compliance Practitioner

Most people have seen the movie " The Sting ", starring Robert Redford and Paul Newman, which tells the story of an older con man, Newman, who shows a younger man, Redford, how to run 'the big con' on a gangster played by Robert Shaw. It was fiction. However, on the front page of the...

Ethical Leadership: Leading a Company Conversation on Compliance

Ethical leadership is absolutely mandatory to have a successful compliance program, whether it is based upon the US Foreign Corrupt Practices Act (FCPA) or the UK Bribery Act. Senior management must not only be committed to doing business in compliance with these laws but they must communicate these...

Barclay's Speeding Defense and GlaxoSmithKline's Claw backs - Implications for FCPA Compliance

I once heard James Baker say that the only way to know how a person will perform as President of the United States is by being President. In other words, there is no way to test how a person will respond to the stresses and pressures of the most important job in the world. Unfortunately the same appears...

Values Based Compliance in an Energy Company: Statoil and Helge Lund

Today is August 1 and the Houston Astros have put a July record of 3-27 in the rearview mirror. Can the Astros change this culture of losing? Hopefully by dumping the few true major leaguers that the team had and repopulating the team from its AAA affiliate will lead to better record in August. At least...

What is Your Integrity Capital?

Compliance practitioners often hear that bribes must be paid in emerging markets to get anything done. Indeed a recent survey by CEB (formerly Corporate Executive Board) of more than 700,000 employees of multinationals around the world, discussed in a Harvard Business Review article, entitled "...

Steve Sabol, NFL Films and the Look and Feel of Compliance-Authenticity

Today we note the passing last week of Steve Sabol, who together with his father Ed Sabol and John (The Voice of God) Facenda, created the phenomenon known as NFL Films. In the late 60s and 70s, before HBO, before ESPN and certainly before the proliferation of all things NFL on television; we were treated...

Popeye, Mike Tyson and the NFL Replacement Referees

Today I had thought about opening my post with the famous Popeye line " I've had all I can stand, I can't stands no more! " or perhaps ask if Mike Tyson was at the Broncos v. Texans game last Sunday post but I thought that I would begin with something even more dramatic. My Irish...

NFL Replacement Referees-the Lessons of Training Temporary Employees

The short autumn of our discontent is over as the United States has ended one of its greatest national convolutions of recent memory. Am I speaking of the attack on the US Consulate in Libya; the current stalemate of US politics and the Presidential race or the upcoming financial cliff on which the US...

Send Lawyers, Guns and Money - Some Steps Law Firms Should Consider

One of my favorite lawyer songs is the Warren Zevon classic " Lawyers, Guns and Money ". I was reminded of that song when I sat on a panel on Wednesday with Dan Chapman and Mike Volkov, where we discussed recent enforcement actions and due diligence under the Foreign Corrupt Practices Act ...

John Brown's Raid and Building Trust in Compliance Programs

October 16 th is the anniversary of John Brown's Raid on Harper's Ferry. For those of you not familiar with this episode of American history, abolitionist John Brown led a raid on the US Arsenal at Harper's Ferry, Virginia, the raid was intended to foment an armed slave revolt in 1859. Brown's...

Measuring ROI: Using the Payback Approach (Part 1/3)

Dont miss Part 2 of the Measuring ROI series: Using the Net-Present-Value Approach , by Jon Allen The goal of financial management in a company is to maximize the value of the company’s stock. Managers need ways to determine whether a project being considered will add value to their companies...

Measuring ROI: Using the Net-Present-Value Approach (Part 2/3)

Dont miss Part 1 of the Measuring ROI series: Using the Payback Approach , by Jon Allen The goal of financial management in a company is to maximize the value of the company’s stock. Managers need ways to determine whether a project being considered will add value to their companies. This is...

Bitcoin Regulation - Addressing Compliance & Risk Issues for Financial Institutions [WEBINAR]

In 2009, a talented programmer (or group of programmers) released the first virtual currency protocol, known as Bitcoin. The Bitcoin protocol, essentially a robust P2P payment system , has now spun several other virtual currencies (Litecoin, Dogecoin, etc..) and has the potential to transform existing...

Measuring ROI: Using the Internal-Rate-of-Return Approach (Part 3/3)

Dont miss Part 1 of the Measuring ROI series: " Using the Payback Approach ", and Part 2: Using the Net-Present-Value Approach , all by Jon Allen The goal of financial management in any company is to maximize the value for its owners. Managers need ways to determine whether projects will...

New Compliance Surveys: “The Answers Are Not Pretty.”

While there is no shortage of compliance and ethics polls/surveys which populate the newsfeeds, there are two that recently caught my attention, both of which point to the same result, as well stated in The Street, The Bull and The Crisis (published by The University of Notre Dame and Labaton Sucharow...