Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. In this episode, Matt Kelly (the coolest guy in compliance) and I take a deep dive into the House Financial Services bill, HR 2515, which amends the Dodd-Frank Act to clarify that whistleblowers who report misconduct to their employers and not to the SEC also have protections against retaliation under the law. This bill fixes the US Supreme Court decision in Digital Realty Trust which mandated that whistleblowers had to go to the SEC to obtain Dodd-Frank anti-retaliation protection. Some of the highlights include:

Some of the highlights include:

  • What was the ruling in Digital Realty Trust?
  • Why did it negatively impact whistleblowers, companies and the SEC?
  • What has made whistleblowers and internal reporting so significant?
  • How does the proposed fix benefit whistleblowers, companies and the SEC?
  • Why should businesses get behind this proposed fix?
  • What are the chances it actually is signed into law?

For more reading check out Matt’s blog post “Progress on Whistleblower Fix

MAY 15, 2019 BY TOM FOX

In today’s edition of Daily Compliance News:

How do you keep pace with innovation? Returning to the podcast is Syed Hussain, the Co-Founder & CEO at Liquidity Digital, a blockchain-based FinTech firm that’s building an end-to-end digital security system. How does this work and how can it make our organizations more efficient, more compliant, and more profitable?

The shift to digital
Traditional forms of capital formation are simply not keeping pace with what the capital demands of the markets are. What blockchain enables people to do is take their existing assets, digitize and securitize those assets, and transform them into digital securities. At Liquidity, they’re building a platform that will allow for the issuance of these digital securities, paving the way for capital markets to go and take the digital route.
Benefits of digital security
Digital security is now bringing in opportunities that aren’t possible in the traditional world. Because these things are built on top of blockchain, it is inherently a very, very secure protocol. It’s transparent, as you’re able to store it on an immutable record and can trace any changes and transfers of ownership. It’s also accessible, allowing you to expand out into global markets. And because it’s digital, it’s made extremely efficient through automation, leading to massive cost reductions and a tremendous amount of savings.
Regulations and Innovation
Liquidity works hand in hand with regulators and partners with them: regulators are able to learn about the technology and build regulations around it, as well as helping Liquidity navigate regulatory channels so that while they leverage this new technology, they can make sure everything is compliant.Regulators are being very open-minded in their approach, and are seeing this new technology as something to look forward to that is leading the charge. This is something that is going to bring in massive amounts of innovation, and while innovation is always going to be ahead of regulation, what’s important is that regulations are able to quickly catch up.
As innovators, the responsibility lies with us: we cannot make changes in reaction to regulations. We need to work withregulators so we can innovate proactively and have innovation through regulation.
Resources
Syed Hussain (LinkedIn)| Liquidity.Digital (Website)| Twitter

MAY 14, 2019 BY TOM FOX

In today’s edition of Daily Compliance News:

  • Judge scolds SEC over VW lawsuit. (WSJ)
  • With friends like this? (Corporate Counsel)
  • Bombardier faces World Bank debarment. (org.cn)
  • Things go from bad to terrible for Bayer. (WSJ)

In special bonus episode, I present a full hour’s presentation of a panel discussion I recently chaired at the ECI Impact 2019 conference. The panel consisted of Steve Scarpino, Director, Ethics and Compliance at BP; Suzanne Mitchell, CCO at US Foods; and Karen Clapsaddle, Ethics Director Lockheed Martin. They were all involved in the design and creation of the ECI High Quality Program and had experience with the Framework Assessment. It was a great review of the HQP and discussion of not only the design of the Framework Assessment but how your company might use it going forward.

Some of the highlights included:

  1. The five elements of the HQP;
  2. What are the Framework Assessment maturity curves;
  3. What level of optimization should companies aspire to?
  4. Can the Framework Assessment be used as internal measure;
  5. How much is the Framework Assessment quantitative v. qualitative driven?
  6. Does a company need to meet all the supporting objectives to be assessed as optimizing?
  7. How should you use and communicate maturity levels within your organization?
  8. Is backsliding possible?
  9. Is there a ‘one-size-fits-all’?

For additional resources:

Check out the ECI website here.

More on the ECI High Quality Program.

How to use the Framework Assessment.