Image
July 7, 2021

Legal Experts Debate Personal Liability for Chief Compliance Officers

Chief compliance officers need a new operating model, not a new legal framework, to avoid being personally penalized unfairly by the US Securities and Exchange Commission for regulatory infractions, say some legal experts.

Chief compliance officers need a new operating model, not a new legal framework, to avoid being personally penalized unfairly by the US Securities and Exchange Commission for regulatory infractions, say some legal experts in a new article at FinOps Report. Personal Liability for CCOs has become an increasing risk where the assumption of safety is becoming less reliable.

The New York City Bar Association’s recent framework suggesting that the SEC be more understanding of the challenges faced by chief compliance officers is a good start, but not the solution. The recommendations only protect CCOs rather than solve the core structural problem. A far better idea would be for CCOs to be given independent reign over a company’s compliance systems through a new governance structure. CCOs shouldn’t have to report to the chief risk officer, chief legal officer or even the chief executive officer as many do.

The full story is over at FinOps Report, covering the potential risks to CCOs and how to manage their exposure to breaches.


Popular
Most Viewed

Image

Related Articles


June 30, 2022

SIMM Falls Short says PRA Letter to Banks




2 MIN



Risk Management


June 28, 2022

FMSB Statement of Good Practice on Trading Platform Disclosures




2 MIN



Regulation


June 20, 2022

Regulatory change and data fragmentation are key challenges for 85% of firms




2 MIN



Regulation