Securities Law Daily provides daily coverage of developments in the regulation of federal, state, and international securities and futures trading, with objective coverage of the...
By Phyllis Diamond
Nov. 17 — Companies that are hoping to persuade prosecutors to recommend deferred or non prosecution treatment for Foreign Corrupt Practice Act violations must report their misconduct to the Securities and Exchange Commission, Enforcement Division director Andrew Ceresney said Nov. 17.
He said he hopes the new approach will prompt firms to quickly report FCPA missteps and underscore the benefits of cooperation and self-reporting.
In an address to an American Conference Institute gathering, Ceresney said that in fiscal 2015 alone, the commission gave significant cooperation credit in more than half a dozen cases. “These cases should send the message loud and clear that the SEC will reward self-reporting and cooperation with significant benefits,” Ceresney stated.
According to Ceresney, self-reporting is critical to the success of the agency's cooperation program, as well as a key tool for maximizing the benefits available for cooperation. Such benefits could include reduced charges and penalties, deferred or non-prosecution agreements, “or in certain instances when the violations are minimal, no charges.”
However, he noted, beyond these benefits, there also is a stick that should incentivize self-reporting. Companies that decide not to self-report misconduct risk having the Enforcement Division learn of the wrongdoing through other means, such as through the agency's whistle-blower bounty program.
“If the Enforcement Division finds the violations through its own investigation or from a whistleblower, the consequences to the company will likely be worse and the opportunity to earn additional cooperation credit may well be lost,” Ceresney warned.
In other remarks, Ceresney commented that bribes “come in many shapes and sizes.” In his view, the FCPA encompasses the provision of valuable favors to a foreign official, as well as cash, tangible gifts, travel or entertainment.
To contact the reporter on this story: Phyllis Diamond in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Susan Jenkins at email@example.com
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)