All Regulatory Enforcement articles – Page 176
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Blog
European Commission Probing Belgian Tax Scheme for Unlawful State Aid
Image: Title: VestagerThe European Commission is investigating whether Belgium’s “excess profit” rule, which allows certain companies to get deep deductions on taxable profits by claiming economies of scale stemming from being part of a multinational group, is breaking EU competition laws. “If our concerns are confirmed, this generalized scheme would ...
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Blog
OCIE Provides Key Observations from 2014 Cybersecurity Examination Initiative
On April 15, 2014, the SEC's Office of Compliance Inspections and Examinations announced that it would be conducting examinations of more than 50 registered broker-dealers and registered investment advisers focused on cybersecurity governance and risk. Until yesterday, there has been little or no information from the SEC concerning the results ...
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Article
SEC, FINRA Dropping Hints on Risk
Compliance officers looking to read some tea leaves about what worries the Securities and Exchange Commission these days might want to skim the 2015 exam priorities that the SEC and FINRA have posted. That guidance applies foremost to financial firms, but “it’s only a matter of time before they require ...
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CW 2015 Preview: Assessing Antitrust Risks
Image: Enforcement of antitrust law is rising around the world, particularly in some of the most desirable markets for overseas expansion, including China, India, Brazil, and Mexico. Inside, we have an overview of how to assess your antitrust risks—which can be quite different from one country (or one product line) ...
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Blog
S&P to Pay $1.375 Billion for Ratings Misconduct
Image: Standard & Poor’s Financial Services and its parent company McGraw Hill Financial reached a $1.375 billion settlement with the Department of Justice for engaging in a scheme to defraud investors in structured financial products. “As part of the resolution, S&P admitted facts demonstrating that it misrepresented itself to investors ...
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Article
Planning Ahead to Manage M&A Due Diligence
Image: Lots of mergers look great on paper. In the real world, however, integrating corporate IT systems can not only be a headache for the IT department; core business functions can be compromised—including financial reporting or other tasks crucial to effective corporate compliance. “Smart companies are ready to start integrating ...
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Blog
Consequences of Insider-Trading Decision Continue
The appellate court decision in U.S. v. Newman has turned Trent Martin from an extradited, admitted insider trader awaiting a sentence of up to several years in prison into a free man. He may not be the last.
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Blog
SEC's Erin Schneider Named Associate Regional Director in San Francisco
The SEC has named Erin E. Schneider as the new Associate Regional Director for enforcement in its San Francisco office. As Associate Regional Director, Schneider will lead the team of attorneys, accountants and other professionals who investigate and litigate the San Francisco office’s enforcement efforts for Northern California and the ...
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Blog
U.K. Financial Watchdog Will Keep Sharp Eye on Compliance Lapses
News coming from the United Kingdom’s Financial Conduct Authority indicates the three-year-old regulator is going to enhance its vigilance of bribery and other financial crimes while keeping close tabs on companies’ controls and processes, according to articles in the Financial Times and FCPA Blog. The FCPA Blog noted that the ...
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Blog
Japanese Firm Fined $3.2M on Price-Fixing Charges
Japan-based auto parts maker Sanden has agreed to pay a $3.2 million criminal fine to the Department of Justice for its role in a conspiracy to suppress competition for the purchase of compressors sold to Nissan North America. “The Division continues to vigorously prosecute companies and individuals that seek to ...
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Article
Cracking Open the Cuba Market
Image: U.S. companies eager to do business in Cuba face a long road in front of them, including a bewildering maze of compliance reviews and certifications before they can transact one dollar of trade. Revival of banking processes alone will be subject to a “blindingly deep amount of regulation and ...
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Blog
Feds Seek Rehearing on Insider-Trading Setback
The Justice Department has asked for a new hearing in the case of U.S. vs. Newman, where an appellate decision had previously reversed insider-trading convictions of two men. Prosecutors say the Newman decision has caused difficulties in other recent insider-trading cases, as the definition of the “personal benefit” requirement conflicts ...
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Blog
Oppenheimer Dinged $20 Mill for Penny Stock Violations
The Financial Crimes Enforcement Network and the SEC today slapped securities broker Oppenheimer with a $20 million penalty for not adhering to rules on the sale of penny stocks. Of that amount, $10 million will go to the SEC to resolve related securities and Bank Secrecy Act violations. Details inside.
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Article
How M&A Due Diligence Goes Wrong
According to data compiled by Bloomberg, $390 billion in merger deals fell apart last year. M&A plans can collapse for many reasons, from regulatory disapproval to clashing CEO egos. Most painful, however, is a deal is consummated quickly that later proves to be a mistake—thanks to poor due diligence. Inside, ...
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Blog
Antitrust Division: $1.86B in Fines Last Year
The Antitrust Division of the Justice Department had one of its biggest years ever in fiscal 2014: $1.86 billion in fines and penalties from various enforcement actions. The lion’s share of that sum stems from a widespread price-fixing and bid-rigging scheme in the auto parts industry, as well as the ...
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Blog
A Closer Look at the SEC's Financial Reporting Cases in FY 2014
As I have previously discussed here in detail, the SEC announced in 2013 that it would be greatly sharpening its focus on accounting fraud cases. Among other things, the agency established a Financial Reporting and Audit Task Force in July 2013 staffed with lawyers and accountants specifically focused on generating ...
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Article
Why Wait for SEC? The DIY Disclosure Review
While companies await results of the SEC’s ongoing review of its disclosure regime (hint: do not hold breath), they can just as well try the same at home. Creating a disclosure committee, cutting redundancy in 10-K risk factors and MD&A sections, spotlighting material information, and using charts and graphs are ...
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Article
FCA’s Reach, Power Only Get Bigger
Image: 2014 was a banner year for enforcement of the False Claims Act, with more civil fines and damages than ever before—but the penalty amounts aren’t what should alarm companies; the growing list of industries in the government’s crosshairs is. “Virtually any industry that does business with the federal government ...
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Blog
Citigroup Compliance Update Posted
Six months following Citigroup’s $7 billion settlement with the government to resolve a federal investigation into the sale of subprime mortgages, the bank’s compliance monitor has published his first report on progress made. The report details Citi’s efforts on outreach requirements, tax reporting requirements, and consumer relief credit to date. ...
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Blog
U.K. Regulator Places Corporate Culture at Heart of Compliance
Image: Title: BischoffWith the recent release of an annual report detailing compliance gains, the head of Britain’s Financial Reporting Council called on boards to tackle the complex issue of corporate culture to ensure ethical corporate behavior. FRC Chairman Sir Winfried Bischoff said his agency this year will delve into how ...