Compliance Chiefs Face Undue Personal Risk, NYC Bar Says (Law360)

Law360, February 4, 2020

Compliance Chiefs Face Undue Personal Risk, NYC Bar Says

A New York City Bar Association committee called on federal regulators to clarify when compliance officers can be held personally liable for institutional misconduct in a new report Tuesday, citing a wave of recent cases the group said could chill internal policing of financial firms. The NYCBA Compliance Committee said the U.S. Securities and Exchange Commission and other financial regulators have been sending mixed signals about their expectations for compliance officers and penalizing individuals for systemic problems, potentially scaring people from the profession with the specter of career-ending sanctions and hefty fines.

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