Articles | Compliance Week – Page 277
-
ArticleSEC fines energy company $300K over rubber stamp internal controls
Image: A recent SEC action against a company for maintaining insufficient internal controls signals a new effort from federal authorities to hold companies to higher standards when it comes to internal control material weaknesses and significant deficiencies. “This is a case that doesn’t have a punchline,” says Tom Sporkin, a ...
-
Article
Indian Supreme Court ruling expands FCPA coverage
Image: A landmark judgment issued by the Indian Supreme Court could have the broader effect of significantly expanding the compliance risk that companies face under numerous anti-bribery laws, including the U.S. Foreign Corrupt Practices Act. CW’s Jaclyn Jaeger examines this latest development that, according to FTI Consulting’s Anuj Bugga, “introduces ...
-
Article
A global glimpse at whistleblower protections in OECD countries
More OECD countries have put in place dedicated whistleblower protection laws in the past five years than in the previous quarter century, according to analysis by the Organization for Economic Cooperation and Development. But what’s a compliance officer to do when whistleblower protection laws in foreign countries directly contradict whistleblower ...
-
Article
As SEC targets EB-5 fraud, the visa program could raise money laundering risks
Image: A government program that grants visas to overseas investors is more popular than ever. The problem: Critics say it is rife with the potential for fraud and money laundering risks. “You can see which way the winds are blowing,” says Eric Berg, special counsel for Foley & Lardner. “The ...
-
Article
Take the Conflict of Interest Challenge
Conflicts of interest have become a big risk area for companies of all sizes, in all industries and any country. Just try spending an hour on the Web, and you’ll find several examples of COI causing financial losses for companies or their customers, questionable outcomes in scientific and medical research, ...
-
Article
Scalia’s absence a blow to companies?
Image: Many companies are left wondering what the death of U.S. Supreme Court Justice Antonin Scalia (left) means for business cases moving forward and for the handful of others that remain suspended in a state of legal limbo. “The mere uncertainty created by Justice Scalia’s absence may cause businesses to ...
-
Article
Compliance risks in M&A transactions
Image: 2015 was a record-breaking year for global mergers and acquisitions, but inherent in those deals are numerous compliance risks, such as potential Foreign Corrupt Practices Act violations and deal-breaking cultural clashes. Involving compliance personnel at the earliest stages of an M&A transaction can significantly reduce unforeseen liabilities. “You don’t ...
-
ArticleInternal audit joins the fight against cyber-threats
As organizations face ever-increasing cyber-security threats, experts are prodding internal auditors to get more involved in at least identifying the risks, even if they aren’t information technology experts. Basic compliance practices can significantly reduce a company’s cyber-exposure, but it needs somebody to drive the effort.
-
Article
Buffett vs. Zuckerberg: Does CEO age matter to investors?
Plenty of research supports the notion of mandatory retirement age for board members, but what about MRPs for CEOs? Does imposing an age limit on top executives really drive better long-term organizational performance? Shareholders, it turns out, seem to prefer experience to youth.
-
Article
SEC nominees in the firing line at Senate hearing
During a nomination hearing before the Senate Banking Committee on March 15, President Obama’s picks to fill vacancies on the Securities and Exchange Commission—Republican Hester Peirce and Democrat Lisa Fairfax—endured more than two hours of questioning that ranged from cordial to confrontational. Enforcing individual liability, ensuring cost-effective rulemaking, and the ...
-
Article
GE unveils new approach to investor reporting
GE might seem an unlikely company to take a lead in the push to simplify financial disclosures. A multinational conglomerate with a long list of business lines, its inherent complexity might seem to make it ill-suited for such a task. And yet, GE is aggressively taking the lead, notably with ...
-
Article
New law adds to forced labor concerns
In recent weeks, companies have learned—some the hard way—that the government is getting even more serious about human trafficking and forced labor issues. While a new law targets international trade, potentially blocking forbidden products at the U.S. border, an expanding view of joint-employer arrangements is also causing concern for domestic ...
-
ArticleThe current state of the EU-U.S. Privacy Shield
The EU-U.S. Privacy Shield, a new compliance framework for the transatlantic transferral of personal information, is almost ready. But the strict data privacy compliance obligations it would impose require a close look now to prevent running afoul of tough data standards that become law later.
-
Article
Valeant’s financial restatement begs compliance questions
Valeant Pharmaceuticals’ announced financial restatement raises questions about the drug company’s compliance program and its business model. But it might also serve as an early warning to all publicly listed U.S. companies about the increased room for misjudging the booking of sales once FASB rolls out its new revenue recognition ...
-
Article
Scrutinizing hiring practices for FCPA violations
Through recent investigations and enforcement actions, the Securities and Exchange Commission and Department of Justice have been warning companies to proceed with caution when hiring the relatives of foreign government officials, lest they run afoul of the Foreign Corrupt Practices Act.
-
Article
New accounting standard for leases brings numerous compliance concerns
As public companies face a 2019 deadline for a new accounting standard that brings leases onto corporate balance sheets, compliance officers will have to consider a long list of implementation decisions and business implications, says Tammy Whitehouse.
-
Article
Pax World’s Joe Keefe on how ESG continues to go mainstream
Image: The 2016 proxy season, building upon trends that emerged from last year’s annual meetings, may prove to be pivotal for investors focused on sustainability, diversity, and environmental issues. “I’ve seen more uptake in the last 18 months than I’ve seen in the previous 17 years,” says Joe Keefe, president ...
-
Article
Q&A with Randy Stephens of NAVEX Global: Why third-party due diligence still flummoxes so many companies
Image: Third-party risk continues to be a major concern for executives, and there is no shortage of high-profile compliance failures in recent years. And yet, a recent survey by NAVEX Global of more than 300 ethics and compliance professionals found that 32 percent of their companies don’t evaluate third parties ...
-
Article
Proxy season debates may include board scrutiny and short-termism
With proxy season just around the corner, the annual tradition of assessing the mood of investors has begun. On tap, experts say, are demands for improved transparency and communication, better disclosures, and a continuing scrutiny of directors, including how (and how much) they and their C-suite cohorts are compensated. “We ...
-
Article
Footnotes of the future: reflections from the Disclosure Initiative
The IASB hears from investors all the time: Financial statement disclosures are too complicated, with too much insignificant detail; unorganized footnotes; and language that reads like a checklist. Seems the board has been listening. Inside, IASB member Gary Kabureck discusses some of the actions the board is taking to improve ...