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Latest News

House Passes Bill to Slow
SEC’s Rulemaking Ability

The House of Representatives passed a bill Friday that orders the SEC to perform new cost-benefit analyses for rules the agency wishes to adopt. The bill's Republican backers say the measure will force the SEC to be more thoughtful in its rulemaking, while opponents say the bill does nothing more than impede the agency's ability to do its job.
 

Walmart FCPA Probe Costs
Hit $230 Million and Running

The Justice Department has yet to sock Walmart with any fines or penalties related to a massive bribery and corruption investigation, and already the scandal is costing the retailer a not-so-low price. Walmart said today that the cost associated with its own investigation into the charges hit $73 million in the first quarter, bringing the total costs so far to $230 million, with another $70 million forecast for the second quarter.
 

Boards Issue Latest Plans to Overhaul Lease Accounting

At long last, the Financial Accounting Standards Board and the International Accounting Standards Board have published their second draft of a proposed standard to overhaul lease accounting to bring all but the shortest-term leases onto corporate balance sheets. Three of FASB's seven members do not support the proposal, however, calling it overly complex and overly burdensome on preparers. More inside.
 

Study Finds Top European Countries for Corruption, Fraud

Ernst & Young's annual fraud survey covering Europe, the Middle East, India, and Africa revealed that bribery and corruption are not just developing-market problems. The survey found that large percentages of European executives believe bribery, unethical practices, and outright fraud are common in their home countries. And some say corporate compliance programs are harming their competitive edge. More inside.
 

COSO Publishes Final New
Internal Control Framework

COSO has published the final version of its newly revised internal control framework, along with two additional resources, which should set public companies in motion to fully review their internal controls to assure they reflect the latest guidance.
 

Nasdaq Withdraws Internal
Audit Rule Proposal, for Now

Responding to cost and implementation concerns voiced by small and growing enterprises, Nasdaq has withdrawn a proposed rule that would have required listed companies to establish and maintain an internal audit function. It plans to submit a modified rule to the Securities and Exchange Commission after a full review of submitted comments.
 

State Regulators Pressuring SEC
to End Mandatory Arbitration

A group of state securities regulators is calling on the SEC to limit or prohibit the practice by broker-dealers and investment advisers of requiring clients to sign mandatory arbitration clauses. Critics say the clauses harm investors by limiting their legal options when disputes arise. More details inside.
 

CFPB Set to Begin Payouts to Fraud Victims From New Fund

The Consumer Financial Protection Bureau has issued a rule governing the administration of its new Civil Penalty Fund, which was created to compensate victims of a person or company that was fined as part of an enforcement action. The first allocations are expected by May 30. More inside.
 

In-Depth Coverage

Don’t Be Fooled by the Lull
in FCPA Enforcement Actions

It has been quiet on the Foreign Corrupt Practices Act front, with the Justice Department and the SEC bringing just three enforcement actions against companies so far in 2013, compared to a combined 19 last year and 48 in 2010. But don't be lulled by that eerie calm; lawyers say it won't be long before regulators are once again piling up FCPA settlements. "All signs indicate that those numbers will shoot back up," says John Davis, a partner at law firm Miller & Chevalier.
 

PCAOB Pushes for More Scrutiny of Related-Party Transactions

Auditors will soon have to follow new rules requiring them to dig deeper into transactions that appear out of the ordinary and to scrutinize business dealings with executives' family members, large shareholders, former executives, and other related-party transactions. Some say the PCAOB's proposal on related-party transactions is long overdue. "The proposed new standard gets rid of the old 'don't worry too much about this' mentality," says Brian Mayhew, associate professor at the University of Wisconsin in Madison.
 

New Compensation Committee Standards Set to Take Effect

Forget the Fourth of July: For companies listed on the New York Stock Exchange and Nasdaq, July 1 is independence day. That is when new standards go into effect for independence of board directors who serve on the compensation committee, and for hiring pay advisers—which may be the trickier part of compliance. Our complete look at following the standards is inside.
 

How to Avoid a Tax Probe in
the Higher-Education Sector

The IRS has issued a report that contains a stern warning for non-profit colleges and universities, which could resonate through the entire not-for-profit sector: Watch out for how you treat unrelated business income and executive compensation if you want to protect your tax-exempt status. "All exempt organizations need to be aware of the importance of accurately reporting unrelated business income and providing appropriate executive compensation," said Lois Lerner, director of the IRS exempt organizations division.
 

Columnist

Will Facebook Become the New Favored Disclosure Outlet?

For those who want to be first out of the gate to communicate material, previously non-public information through social media Websites, there is now a clearer path to do so, but with certain precautions that may not be obvious with a first reading of the new guidance from the SEC. Inside, Columnist Lou Thompson looks at what the new guidance means for the future of social media disclosure.
 

A Slow Start for the SEC’s Whistleblower Office Payouts

After 21 months in operation, a ramp-up in the office's staff members, and the roll-out of a $21 million "Tips, Complaints, and Referrals" database, the Office of the Whistleblower has only paid one small award to a whistleblower. With no other clear success stories to point to thus far, questions about the program's effectiveness are starting to arise. Inside, Columnist Bruce Carton examines the SEC's Whistleblower Office as it nears its second year in operation.
 

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Events of the Week

Addressing the Challenges of Solvency II Pillars 2 and 3
Sponsored by IBM

Information Governance: Managing the Lifecycle of Data
Sponsored by HP Autonomy

Who's Minding the Files? Managing the File Transfer Explosion
Sponsored by IBM

e-Books

Getting It In Writing: The Art of Policy Management
Sponsored by NAVEX Global

Information Governance: Managing the Lifecycle of Data
Sponsored by HP Autonomy

Anti-Money Laundering Illustrated: Visualizing an Effective Capability
Sponsored by OCEG

Thought Leadership

Today's Chief Audit Executive: Continuing on a Path to Value Creation
Sponsored by Grant Thornton

What Does an Effective Customer Risk Assessment Program Look Like?
Sponsored by OCEG

Getting Ready for the Physician Payment 'Sunshine' Rule
Sponsored by Bloomberg BNA

New Compliance Week and Kroll Benchmarking Report on Anti-Bribery & Corruption
Sponsored by Kroll

Upcoming Webcasts

Strengthening Controls in 2013, Part 3: Purchase-to-Pay Cycle
Sponsored by ACL

Evolution of Compliance: 2013 State of Compliance Survey Results
Sponsored by PwC

Compliance Week Podcasts ...

Every week we chat with leading thinkers in compliance, auditing, risk management, public policy and more. These short (10-15 minutes) interviews are free to all. Follow Compliance Week podcasts on iTunes.