Internal Investigations

Oksana Wright and Charles DeMonaco discuss the management and corporate compliance measures for the companies to prioritize during the time of cost-cutting and uncertainty:

https://www.corporatecomplianceinsights.com/corporate-compliance-during-covid-19/

In a recent blog by Chris Pogue (a digital forensic expert), he highlighted a handful of considerations for firms both pre and post data breach. After all, the issue is not really whether you will suffer a breach, but when and how bad will it be.

Those considerations bear repeating, and include the following:

  1. Retention

Now that 2014 is here, it is a good idea to understand what the Enforcement Division might focus on this year.  In a recent article that appeared in the BNA, David Marder, a partner with Robins, Kaplan, Miller & Ciresi identified fifteen things to expect in the coming year. 

The fifteen things he noted to

A firm faced with a regulatory investigation should hire outside counsel to bring objective analysis to the situation. Although it may seem simple, the question that must first be addressed is who the lawyer represents.

If the firm itself is the subject of the inquiry, then the firm needs representation. However, that same lawyer should

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In two recent posts, I highlighted the problems with incomplete account opening documents and those signed in blank.  Now that you know the problem, the important question to ask is how do you prevent the problem in the first place.

A robust supervision program and a culture of compliance are a start, but not

The SEC has been much more aggressive in policing a company’s internal investigations.

There has been a direct causal relationship to the SEC’s increased use of whistleblowers and its focus on a companies’ use of internal investigations.  We have seen that the SEC probably knows more about the matter before it begins its official inquiry or contacts the

The SEC, recently, sued a private equity fund adviser for, among other things, allegedly violating Investment Advisers Act of 1940 Rule 206(4)-7, for failing to have procedures requiring verification of client signatures and instructions by a second person.  See http://www.sec.gov/litigation/complaints/2012/comp-pr2012-244.pdf.

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The SEC stated that the RIA and its principal made certain unauthorized transactions and

money.jpgNever, under any circumstances, should you have your client sign an account opening document in blank, for you to complete at some later time.  To most of you, this is not much of a secret, but I have seen it enough in my practice of defending brokers to know that it happens all too often.

idea.jpgIn our hyper-fast world, financial advisors, like many in the service sector, have become lazy.  Let me be clear, I think financial advisors are working harder than ever to service their clients in these challenging times for which they should be commended.

The laziness to which I refer is that I see financial advisors taking