SEC’s Grewal: Being a compliance officer not a ‘get-out-of-jail’ card
By 
Aaron Nicodemus2023-10-25T20:09:00
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:
THIS IS MEMBERS-ONLY CONTENT
You are not logged in and do not have access to members-only content.
If you are already a registered user or a member, SIGN IN now.
Related articles
-
BlogFormer SEC enforcement head Grewal joins N.Y. law firm Milbank as partner
Gurbir Grewal, who recently left the Securities and Exchange Commission after three years as head of its Division of Enforcement, has joined the law firm Milbank as a partner in its New York office.
-
PremiumCCO liability: How to protect your compliance career
Despite significant issues outside the control of most chief compliance officers, some regulators have signaled more individual liability cases are to be expected. Will accepting the wrong job, in hindsight, make it your last?
-
News BriefSEC lauds cooperators, whistleblowers in FY23 enforcement results
A big year for disgorgement helped the Securities and Exchange Commission to its second highest total of financial remedies ordered in a single year in fiscal year 2023.
More from Regulatory Enforcement
-
ArticleFalse Claims Act enforcement themes for 2026
The U.S. Department of Justice touted a record $6.8 billion in False Claims Act (FCA) recoveries in fiscal year 2025, much of that total stems from prior years’ cases and does not necessarily reflect the administration’s current enforcement direction.
-
ArticleFederal jury convicts former coal executive in Egypt-linked coal FCPA case
A former vice president of an American coal company was convicted by a federal jury for his part in an international bribery and money laundering scheme. The conviction represents an anomoly in the Trump administration’s handling of Foreign Corrupt Practices Act (FCPA) cases launched under former President Joe Biden.
-
ArticleU.K. financial regulator cuts cases to focus on investigations that achieve results
The U.K. financial regulator has dropped 100 investigations without action over the past three years, but compliance should expect a refocus of resources rather than a retreat from enforcement.