Assets of Compliance in the United Nations

Since its inception, compliance with the UN’s rules and regulations has been contentious for nations and individuals alike. Perhaps most prominent are the Security Council and the International Court of Justice, known internationally as sources of law for the maintenance of international peace and security. In theory, bodies like the Security Council and the International Court of Justice may presume member states’ compliance with their rules and regulations. Yet often the presumption of compliance is just that—in an effort to maintain its status as a peaceful international entity, the UN has limited enforcement power. The result is body of agreement, and not much else.

Grizzly Bears and Compliance with the Endangered Species Act

In late June 2017, the Department of the Interior and U.S. Fish and Wildlife Service (FWS) officially announced that after 42 years, the population of grizzly bears in the Greater Yellowstone area could be delisted as an endangered species under the Endangered Species Act (ESA). The bears in areas surrounding Yellowstone National Park would now be under state control, a move which has been met with great resistance from environmentalists and some Native American tribes in the region. On August 30, 2017, EarthJustice filed a lawsuit alleging FWS failed to rationally address threats to grizzly bears, including consideration of the lower-48 population as a whole, and therefore violating the Endangered Species Act delisting procedures.

Is Federal Securities (De)Regulation Obscuring State Blue Skies?

Under Rule 506 of Regulation D (“Reg D”), the U.S. Securities and Exchange Commission (“SEC”) exempts companies making private placements to accredited investors from all federal and state securities registration requirements. As a federal safe harbor, Rule 506 of Regulation D preempts all conflicting state securities regulations, but reserves the states’ rights to require issuers to make notice filings, and to investigate and prosecute securities fraud under state securities laws, commonly known as “Blue Sky Laws.” On its face, Rule 506 of Reg D creates a more efficient securities marketplace. However, the historical lack of consequences for non-compliance at the federal level, combined with inconsistent state notice requirements for using exemptions, further complicates an already over-regulated securities marketplace.

Dear Colleague: Collegiate Compliance with Changing Evidentiary Standards of Sexual Misconduct

In a world where sexual assault occurrences on college campuses are becoming more readily recognized and reported, one of the many arising issues is how to appropriately respond to the allegations. Facing college disciplinary boards is one of the principal battlegrounds. With cases of sexual assault often lacking enough evidence for police action, many have demanded that colleges take responsibility for their students’ safety. However, in a situation where it is already “he said, she said,” what is the appropriate evidentiary standard for reprimand?

Clean Water Act vs. America’s Family Farms: Should the Two Be Foes?

As summer turns to fall, leaves begin to change, and farmers in the Midwest start the process of harvesting their crops. Farmers are hard-working, environmentally conscious, planners, who consider how their planting, fertilizer, and equipment effect the environment that their livelihood depends on. They do all of this while still attempting to remain compliant with all applicable state and federal laws. Currently, farmers are worried about changes being made to the Clean Water Act and if they are going to incur large economic damages because of it.

Current Trends in Medicaid 1115 Waiver Requests: Are They Schemes to Avoid Compliance with Disfavored Requirements?

States looking for flexibility or creativity in implementing Medicaid programs can apply for waivers from the Secretary of Health and Human Services (HHS). According to the Medicaid and CHIP Payment Access Commission (MACPAC), waiver use is quite extensive—resulting in “wide variations in program design, covered services, and eligible populations among states and even within states.” As of September 2017, 33 states account for 41 approved waivers, and 18 states have 21 total pending waivers. The scope of these waivers traditionally broadens eligibility and creates new programs in states where Medicaid needs are not expressly recognized by federal law. Current pending applications suggest, however, that states seeking waivers now do so as a means to circumvent Medicaid program requirements they disagree with.

Powdered Caffeine – Friend or Foe?

Most Americans consume caffeine regularly. High amounts of caffeine are found in a wide range of drinks including sodas, coffee, and energy drinks. Like most things, caffeine is safe for most people as long as it is consumed in moderation. The dosage size of powdered caffeine has come under scrutiny mostly due to its potency. The Food and Drug Administration has notified powdered caffeine distributors that their products are potentially dangerous to consumers as they have the possibility of causing serious adverse health consequences, including death. The FDA’s notices required powdered caffeine distributors to accurately label and market their products ensuring they are in compliance with the law. Four of the five distributors removed their products from the market following the notices, and the fifth distributor no longer markets to consumers.

Viewing Aviation Regulations Through a Lens of Safety

A basic understanding of aviation regulations helps to understand some of the most basic requests airlines make of their passengers. Air travel is hailed as one of the safest modes of transportation not only because of the advancements in technology and the training that the aviators go through before they get a seat in the cockpit, but also because of the many regulations that bind it. Understanding the basis of a particular regulation is necessary to elucidate why the requirements exist, although the pressures of travel on passengers may make them seem arbitrary or unwarranted.

The Risks of Outsourcing 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?

Issue II of the Journal of Regulatory Compliance Is Now Live!

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.