The Art of Compliance
The Chief Compliance Officer (“CCO”) plays a vital role in in the business of broker dealers and investment advisors. Following the financial crisis, firms hired compliance officers in droves to help repair vulnerabilities in firm policies and to address emerging regulation. As regulatory complexity and demand for compliance professionals grew, firms looked to consultants, contractors and lawyers to help fulfill specialized compliance functions. Can an unaffiliated third party effectively fulfill the Chief Compliance Officer role?
I’m excited to announce that we have released the second issue of the Journal of Regulatory Compliance!
Issue II begins with a reflection on compliance education at Loyola University Chicago School of Law from our own previous Executive Editor, Ryan Whitney; followed by an analysis of compliance and ethics issues with third-party vendor relationships from the Columbia School of International and Public Affairs’ own Michael Silverman. Jennifer Mascott, an expert in administrative and Constituional law from George Washington , contributed a discussion of the status of administrative law judges of the U.S. Securities and Exchange Commission as “Officers of the United States.” Last but certainly not least is a critique of financial and securities enforcement against compliance personnel by Erica Skoczylas. Journal of Regulatory Compliance Editor-in-Chief Ryan Meade rounds out the set, with an afterword introducing some of the themes and concepts that will be explored in Issue III.
I had a wonderful time working with our distinguished authors to bring the publication to you as readers today. I hope you enjoy our insightful author’s analyses and insights.
It is no secret that streaming services have been a highly controversial issue in the entertainment industry in recent years. Artists from all over the world have been affected by the rise of music streaming; many believe it is no different than piracy. Nevertheless, Spotify is in fifty-eight countries, and the user base consists of over fifty million subscribers globally, with twelve and a half million paying subscribers. As Spotify has grown, questions have risen surrounding the rights that artists, producers, and writers have to their music that the public has access to through ‘streaming’. As technology advances, the music industry will continue to change. The recently filed lawsuits against Spotify show that this is an underdeveloped area of the law that needs to be explored. The decisions regarding Spotify’s streaming service and compliance with copyright laws will have major implications for not just Spotify, but the entire music industry.
The academic year for 2017-2018 has begun at the Center for Compliance Studies. We have a lot on tap—a new look for the blog, an exciting symposium in February 2018, Issue 2 of the Journal soon to be published, and a number of new scholarly endeavors.
Compliance programs rely heavily on internal investigations. Yet unlike their counterparts in the in-house counsel’s office, compliance professionals rarely give notice when they are conducting such investigations. Whether compliance professionals have duty to notify individual directors, officers and employees of an internal investigation remains unclear. This lack of clarity leads to confusion with employees and officers regarding the limits of confidentiality, and the compliance officer’s duty of loyalty. A robust ethics and compliance program should therefore take a proactive stance and integrate Upjohn warnings—a standard of corporate counsel, but modified to fit the compliance function—into the internal investigation process.
Brittany Tomkies Executive Editor Loyola University Chicago School of Law, JD 2017 Over the past decade, risk management and compliance professionals have moved away from asking “what happened” and “who did it” to asking “why” the error occurred in hopes of developing effective safeguards to prevent reoccurrence of those errors. As a result of …
Ryan Whitney Managing Editor Loyola University Chicago School of Law, JD 2017 With the chaotic 2016 behind us and 2017 underway, many people are working to maintain the resolution(s) they set for themselves to ensure that last year’s failures are not repeated. Sadly, more than a quarter of us have already broken these resolutions …
Fannie Fang Executive Editor Loyola University Chicago School of Law, JD 2017 CMS has reported that Medicare expenditures amount to roughly 17 billion a year on patient readmissions alone. Studies show that almost twenty percent of all patients who are admitted to a U.S. hospital makes a repeat visit within thirty days of discharge. …
Brittany Tomkies Executive Editor Loyola University Chicago School of Law, JD 2017 A September 2016 survey from the Society of Corporate Compliance and Ethics (SCCE) found that 83% of compliance professionals said their program prevented misconduct at least once in the last two years with 46% of respondents saying their compliance program prevented five …
Corinne Nierzwicki Production Editor Loyola University Chicago School of Law, JD 2018 The Society of Corporate Compliance and Ethics recently hosted the 15th Compliance & Ethics Institute (CEI) in Chicago, Illinois. Several Loyola faculty members and students, including myself, attended CEI. I had an excellent experience at CEI networking with attendees and learning from the …