In September, we wrote about the SEC’s enforcement actions against 23 investment firms for violations of Rule 105 of Regulation M (“Rule 105”) in an effort to crack down on the potential manipulation of offering prices of follow-on and secondary offerings. In the last two months, the SEC has furthered Co-Director of Enforcement Andrew Ceresney’s
New Year Brings New Enforcement Efforts Targeting Broker-Dealers
On Dec. 23, SEC spokesman John Nester announced a new task force for scrutinizing broker-dealers. This task force, which began development in November 2013, will work with the SEC’s national exam program and FINRA. According to the agency’s 2013 Financial Report, the task force will focus on current practices within the broker-dealer community and
The 2013 Dodd-Frank Whistleblower Program Annual Report
In November, the SEC Office of the Whistleblower (“OWB”) released its 2013 Annual Report on the Dodd-Frank Whistleblower Program (the “Report”). The Report details the number of whistleblower tips and complaints received and the amount of whistleblower awards made during fiscal year 2013.
Whistleblower Complaints and Tips FY 2013
According to the Report, the SEC
CFPB Gaining Strength
The Consumer Financial Protection Bureau (CFPB or Bureau), fresh off Director Richard Cordray’s Senate confirmation over the summer, is moving forward with more confidence and purpose in its investigation and enforcement strategies, as we last discussed in our report on the CFPB’s roadmap for “Responsible Business Conduct.” Two recent developments suggest that the
A Question of Ethics: May Staffers Participate in IPOs?
Roll Call November 13, 2013
Q. I am a House staffer and have been offered a chance to participate in the initial public offering of a well-known company that is about to go public. My position as a House staffer had no role at all in the opportunity becoming available to me. In fact, the
SARs and Confidentiality – When Law Enforcement and Regulators Come Calling
Financial institutions often encounter suspicious transactions that warrant the filing of a suspicious activity report (“SAR”). When this occurs, the Bank Secrecy Act (“BSA”) and federal regulations specifically prohibit the unauthorized disclosure of the SAR, or any information that may reveal the existence of the SAR. This confidentiality requirement may place certain employees, especially those
A Question of Ethics: Keep Working While Furloughed?
Roll Call October 15, 2013
Q. I am a staffer for a member of the House. The government shutdown has caused most members’ offices to furlough staffers, and I am one of them. Unfortunately, there are a number of things I was working on before the shutdown, and I’d like to be able to make
Self-Reporting Leads to SEC Entering its First Non-Prosecution Agreement Regarding FCPA Violations
On April 22, 2013, the SEC announced that it had entered into a non-prosecution agreement (NPA) with Ralph Lauren Corporation (RLC), allowing RLC to avoid prosecution for violations of the Foreign Corrupt Practices Act (FCPA). This is the first NPA the SEC has entered involving FCPA violations.
From 2005 to 2009, RLC’s Argentine subsidiary paid
Defamation Claims Increase Costs of Cooperation with Government Investigations
Disclosing the results of a company’s internal investigation to government investigators is always fraught with potential problems. The most obvious is the danger of waiving attorney-client privilege and work product protections that would otherwise shield the internal investigation from discovery in parallel litigation. But another less-heralded danger is the risk of defamation claims by employees identified
DEFERRED PROSECUTION AGREEMENTS PROSECUTION GUIDANCE
Crime and Courts Act 2013. The Schedule contains a requirement that the DPP and the Director of the SFO jointly issue a Code giving guidance for prosecutors on a number of matters, including the general principles to be applied in determining whether a DPA is likely to be appropriate in a given case.