Partner Patrick Campbell, who is the chairman of the New York City Bar’s (NYCB) Compliance Committee, is quoted in an article published by The Wall Street Journal on June 4, 2021, regarding the “Framework for Chief Compliance Officer Liability in the Financial Sector,” which was released on June 2, 2021, by the NYCB. The Framework (Proposal) follows the committee’s February 2020 report on the same subject.
The Proposal is aimed at determinations by the Securities & Exchange Commission and the Financial Industry Regulatory Authority whether to bring charges against chief compliance officers for conduct relating to their compliance-related duties under the federal securities laws. It responds to industry concerns that increased enforcement actions “discourage individuals from becoming or remaining compliance officers.”
Campbell told The Wall Street Journal that charges against compliance officers can be damaging to their careers. “We’re relaying the concerns that compliance officers have and … to build on the dialogue.”
In the NYCB’s announcement, Campbell said, “The Committee appreciates the attention that regulators have given to the compliance function and looks forward to any opportunity to collaborate to add this necessary guidance for the shared benefit of regulators, compliance officers, the financial industry and the investing public.”
Read the Wall Street Journal article (registration required).
Read the Law360 coverage.
Read the NYCB news release.
Read the Framework.