A spate of U.S. Securities and Exchange Commission enforcement cases involving several prominent financial services firms has renewed concerns that compliance officers could be blamed for violations committed by others at their companies.
Now, a group representing financial services industry compliance professionals is demanding clarity. The National Society of Compliance Professionals (NSCP) wants the SEC to set guidelines for its enforcement staff, a step that could curb punishing compliance officers for problems they cannot control, the NSCP says.
“Compliance officers do not operate the business; they advise and support the business,” wrote Lisa Crossley, NSCP executive director, in an August 18 letter to SEC Enforcement Director Andrew Ceresney. NSCP’s concerns include blaming compliance officers for behavior by rogue employees and for directives from unscrupulous superiors.
The original article can be found at www.reuters.com