SEC’s Grewal: Being a compliance officer not a ‘get-out-of-jail’ card
The head of enforcement at the Securities and Exchange Commission (SEC) outlined the scenarios in which the agency would charge a chief compliance officer for securities law violations.
Gurbir Grewal told an audience of compliance professionals in remarks delivered Tuesday at the New York City Bar Association’s Compliance Institute the agency only brings actions against compliance officers in certain specific situations.
“The short answer is that we do not second-guess good faith judgments of compliance personnel made after reasonable inquiry and analysis. That is why such actions are rare,” he said.
The agency would consider charges in three circumstances, he said: