Financial Regulatory Forum

Companies should use metrics to defend themselves from Dodd-Frank whistleblower claims, report says

By Emmanuel Olaoye

NEW YORK, March 5 (Thomson Reuters Accelus) - Companies in the United States should focus on implementing performance metrics to defend themselves from whistleblower claims and to prevent misconduct within the company, according to a report from consultancy PricewaterhouseCoopers.

Using metrics such as the turnover of compliance staff and the percentage of anonymous reports can help a company monitor the performance of its compliance program. It can also help to reduce the chances of an employee reporting misconduct directly to the Securities and Exchange Commission, PwC said in the report, which is an analysis of whistleblower rules included in the Dodd-Frank regulatory overhaul and adopted last May by the SEC. (more…)

The Einhorn effect? How the FSA’s authority might be undermined by vocal unrepentant sinners

By Peter Elstob

LONDON/NEW YORK, Feb. 23 (Thomson Reuters Accelus) – Britain’s Financial Services Authority (FSA) could see its credibility undermined as individuals with deep pockets choose not to challenge fines, instead paying up but then publicly criticising the regulator, a leading regulatory lawyer has warned. “I think it will be interesting to see whether … individuals and firms decide, for good commercial reasons, not to challenge cases, but to either settle them or to leave them uncontested, but then to comment rather adversely on the FSA’s process and finding,” said Helen Marshall, a former senior FSA enforcement official and now a partner at Bingham McCutchen LLP.  (more…)

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