Financial Regulation and Compliance

Devise an organized, proactive approach to financial
compliance

Financial Regulation and Compliance provides detailed,
step-by-step guidance for the compliance professional seeking to
manage overlapping and new regulatory responsibilities. Written by
David Kotz, former Inspector General of the SEC with additional
guidance provided by leading experts, this book is a one-stop
resource for navigating the numerous regulations that have been
enacted in response to the financial crisis. You'll learn how best
to defend your organization from SEC, CFTC, FINRA, and NFA
Enforcement actions, how to prepare for SEC, FINRA, and NFA
regulatory examinations, how to manage the increasing volume of
whistleblower complaints, how to efficiently and effectively
investigate these complaints, and more. Detailed discussion of the
regulatory process explains how aggressive you should be in
confronting federal agencies and self-regulatory organizations and
describes how commenting on issues that affect your business area
can be productive or not. The companion website includes a glossary
of terms, regulations and government guidance, relevant case law,
research databases, and FAQs about various topics, giving you a
complete solution for keeping abreast of evolving compliance
issues.

These days, compliance professionals are faced with a myriad of
often overlapping regulatory challenges. Increased aggressiveness
on the part of regulators has led to increased demand on financial
firms, but this book provides clear insight into navigating the
changes and building a more robust compliance function.

• Strengthen internal compliance and governance programs

• Manage whistleblower programs and conduct effective
  investigations

• Understand how to minimize exposure and liability from
  Enforcement actions

• Learn how to prepare for the different types of regulatory
  examinations

• Minimize exposure from FCPA violations

• Understand the pros and cons of commenting on regulations

The volume and pace of regulatory change is causing new and
diverse pressures on compliance professionals. Navigate the choppy
waters successfully with the insider guidance in Financial
Regulation and Compliance.

Auteur

H. DAVID KOTZ serves as a Managing Director at Berkeley Research Group (BRG), an international expert services and consulting firm that offers independent expert testimony, litigation and regulatory support, authoritative studies, strategic advice, and document and data analytics. At BRG, Kotz focuses on internal investigations and consults with and provides expert testimony on the regulation of and securities trading by broker-dealers, investment advisers, hedge funds, insurance companies and banks. He also serves as a compliance monitor for firms that have entered into deferred prosecution agreements and similar arrangements with government agencies. Previously, Kotz served as the Inspector General of the Securities and Exchange Commission (SEC).

Résumé
Devise an organized, proactive approach to financial compliance Financial Regulation and Compliance provides detailed, step-by-step guidance for the compliance professional seeking to manage overlapping and new regulatory responsibilities. Written by David Kotz, former Inspector General of the SEC with additional guidance provided by leading experts, this book is a one-stop resource for navigating the numerous regulations that have been enacted in response to the financial crisis. You'll learn how best to defend your organization from SEC, CFTC, FINRA, and NFA Enforcement actions, how to prepare for SEC, FINRA, and NFA regulatory examinations, how to manage the increasing volume of whistleblower complaints, how to efficiently and effectively investigate these complaints, and more. Detailed discussion of the regulatory process explains how aggressive you should be in confronting federal agencies and self-regulatory organizations and describes how commenting on issues that affect your business area can be productive or not. The companion website includes a glossary of terms, regulations and government guidance, relevant case law, research databases, and FAQs about various topics, giving you a complete solution for keeping abreast of evolving compliance issues.

These days, compliance professionals are faced with a myriad of often overlapping regulatory challenges. Increased aggressiveness on the part of regulators has led to increased demand on financial firms, but this book provides clear insight into navigating the changes and building a more robust compliance function.

• Strengthen internal compliance and governance programs
• Manage whistleblower programs and conduct effective investigations
• Understand how to minimize exposure and liability from Enforcement actions
• Learn how to prepare for the different types of regulatory examinations
• Minimize exposure from FCPA violations
• Understand the pros and cons of commenting on regulations
  The volume and pace of regulatory change is causing new and diverse pressures on compliance professionals. Navigate the choppy waters successfully with the insider guidance in Financial Regulation and Compliance.

Contenu

Foreword xiii

Preface xvii

Acknowledgments xxiii

About the Author xxv

CHAPTER 1 Jurisdiction of Regulators Who Regulates Whom and What 1

1.1 Federal Financial Regulatory Structure 2

1.2 The Securities and Exchange Commission (SEC) 3

1.3 The Financial Industry Regulatory Authority (FINRA) 6

1.4 The Commodity Futures Trading Commission (CFTC) 8

1.5 The National Futures Association (NFA) 10

1.6 The Department of Justice (DOJ) 12

1.7 Recent Regulatory Failures to Uncover Fraud 14

1.8 Expert Advice on Overlapping Regulations 19

CHAPTER 2 How to Strengthen Governance and Compliance in Light of New Regulations 23

2.1 Dodd-Frank Act's Impact on Governance and Compliance 25

2.2 Managing Executive Compensation 29

2.3 Creating Effective Policies and Procedures 30

2.4 Ensuring Accountability within an Organization 32

2.5 Red Flags of an Unethical Culture 33

2.6 Ethical Decision-Making 34

CHAPTER 3 How to Manage Whistleblowers' Complaints 37

3.1 Oversight and Failures of the SEC's Whistleblower Program 37

3.2 The Dodd-Frank Act's Restructuring of the SEC's Whistleblower Program 41

3.3 Whistleblower Complaints to the SEC since the Restructuring of Its Program 43

3.4 The CFTC's New Whistleblower Program 45

3.5 Significant U.S. Supreme Court Decision on Whistleblower Complaints 46

3.6 Managing Complaints Brought to Internal Compliance Officials 47

3.7 Putting Appropriate Whistleblower Policies and Procedures in Place 51

3.8 Effect of the SEC and CFTC's New Whistleblower Programs 52

CHAPTER 4 How to Defend SEC Examinations 55

4.1 SEC Authority to Conduct Examinations 55

4.2 SEC's Office of Compliance Inspections and Examinations (OCIE) 57

4.3 Types of SEC OCIE Exams 57

4.4 Preparation for the Exams 58

4.5 Process of Examinations 60

4.6 How the SEC Exam Concludes 65

4.7 SEC OCIE Examination Trends 66

4.8 Not Underestimating the SEC Examiners 67

CHAPTER 5 How to Defend FINRA Examinations 69

5.1 FINRA Qualification Standards and Rules and Regulations 70

5.2 FINRA's Risk-Based Approach 71

5.3 FINRA's Regulatory and Examination Priorities 71

5.4 Differences between FINRA and SEC Exams 78

5.5 Types of FINRA Exams 79

5.6 Conduct of FINRA Exams 80

5.7 How the FINRA Exam Concludes 83

5.8 Educating the FINRA Examiners 84

CHAPTER 6 How to Defend an NFA Examination 87

6.1 Types of Entities under the Jurisdiction of the NFA 87

6.2 Impact of the Dodd-Frank Act 90

6.3 NFA Examination Process 90

6.4 Preparing for an NFA Exam 92

6.5 Length …