CCO liability: How to protect your compliance career
By 
Amii Barnard-Bahn2024-05-01T14:00:00
It’s largely impossible to effectively assess an organization’s culture of compliance prior to taking a chief compliance officer job. And yet, regulators’ growing interest in holding CCOs responsible for company misconduct has understandably raised anxiety for would-be compliance chiefs.
They might be asking themselves questions like:
- What if liability is imposed when compliance acts negligently, rather than recklessly?
- What happens when compliance relies on inaccurate data from another employee?
- Are compliance officers still liable if they haven’t participated in the violations caused by the company or other executives?
Related articles
-
PremiumPreparation key for ‘tectonic change’ from FTC noncompete ban
Companies would be wise to prepare to comply with the Federal Trade Commission’s rule to ban noncompete clauses, despite legal challenges that might delay or prevent it taking effect altogether.
-
PremiumCFTC’s Pham: ‘There will likely be more’ CCOs charged with individual liability
Caroline Pham of the Commodity Futures Trading Commission said she expects the regulator to pursue more individual liability cases against chief compliance officers, in the aftermath of landmark charges laid against the former CCO at Binance.
-
PremiumSEC’s Grewal: Being a compliance officer not a ‘get-out-of-jail’ card
Gurbir Grewal, head of the Enforcement Division at the Securities and Exchange Commission, outlined the scenarios in which the agency would charge a chief compliance officer for securities law violations.
More from Regulatory Enforcement
-
PremiumDiscover, in allowing misclassification problem to fester, pushed compliance aside
Federal banking regulators have laid the blame for Discover Financial Services charging merchants $1 billion in excessive credit card fees over 17 years squarely at the feet of company executives.
-
News BriefCFPB drops $95M enforcement action against Navy Federal, without explanation
The Consumer Financial Protection Bureau has dropped a $95 million enforcement action against Navy Federal Credit Union, the latest regulatory pullback by the agency under President Donald Trump.
-
ArticleFCA drops ‘naming and shaming’ approach – except in ‘exceptional circumstances’
The UK’s financial regulator has had a rough ride over the past couple of years as its strategy to “name and shame” firms it opened investigations into was widely slammed by the industry and lawmakers over concerns that companies could be unfairly maligned.