S2:E13 | Revisiting the Issue of CCO Liability | Compliance In Context

Welcome back to the Compliance In Context Podcast! This episode, we welcome in Carlo di Florio, Chief Services Officer at ACA Group and Brian Rubin, a partner and leader of the Eversheds Sutherland securities enforcement practice to discuss the issue of CCO liability and the newly proposed NSCP Firm and CCO Liability Framework. In our Headlines section, we look the recent attention and rulemaking onslaught in the private funds space and discuss cryptocurrency enforcement trends. And finally, we’ll wrap up today’s show with another installment of History Has Your Back series where we honor the legendary Chinese workman and builder Yi Kaizhan to teach us a compliance lesson about precision.

Headlines

• Proposed Amendments to Form PF and private fund Risk Alert
• SEC Proposed Amendments for Private Fund Advisers

Interview

• NSCP Regulatory Advisory Committee
• Commentary from regulators on CCO liability
• NYCBA Framework
• How will the Framework impact firms and firm leadership?
• How will the Framework impact examination teams and the examination process?
• What is the impact of the Framework on regulator enforcement?

History Has Your Back

• Jiayuguan Pass of the Great Wall
• The wall stabilizing brick
• The value of precision in compliance

Quotes:

 “The two key principles of the framework (that you noted on the outset), impact the overall exam process. Right? So one is, I think the NSC framework does a really good job of emphasizing, taking a holistic approach to looking at the compliance program, and the culture within the firm, overall. And then two, doing so earlier in the regulatory exam or the enforcement of the investigative process.” – Carlo di Florio 

“We hope that FINRA and the SEC (and other regulators) might be able to use this Framework as a solid foundation by which to conduct parts of their investigation processes. But then again, another benefit would be for a persons (like yourself and others) that might be thinking about how to defend against an enforcement action, just to be able to show that there were other mitigating circumstances involved.” – Patrick Hayes

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Compliance in Context