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Investigating potential violations of law, responding to whistleblowers and mitigating associated ethical dilemmas
Journal of Financial Compliance,
2
(2),
111-120
(2018)
Abstract
Financial companies and companies with a global footprint face increased regulatory risks and must respond appropriately when faced with suspected misconduct. A company’s response to suspected misconduct is crucial, because an inappropriate or insufficient response could expose the company, its directors and its management to regulatory enforcement actions, private civil litigation and reputational damage. Often, a company’s response includes conducting an investigation led either by management or by an independent committee of the board of directors. This paper discusses relevant considerations and general best practices for investigating suspected misconduct, including guidance for determining when a legal department should recommend that an independent committee of the board of directors conduct an independent investigation. This paper also discusses how to respond to whistleblowers and ethical issues that commonly arise in internal investigations.
Keywords: internal investigations; audit committee; general counsel; board of directors
The full article is available to subscribers to the journal.
Author's Biography
Bradley J. Bondi is a senior partner with Cahill Gordon & Reindel LLP and leader of Cahill’s securities enforcement and regulatory practices. He advises financial institutions and global corporations, boards of directors, audit committees, and officers and directors of publicly- held companies in significant corporate and securities matters, with particular emphasis on internal investigations and enforcement challenges. Securities Docket described him as ‘the first choice among Boards of Directors and Audit Committees of the Fortune 500 when their company is faced with SEC or DOJ problems’.
Paul T. Chryssikos is Vice President and Chief Counsel for Annuities at Lincoln Financial Group, a Fortune 250 company headquartered in Radnor, Pennsylvania. Mr Chryssikos leads the legal and compliance team supporting Lincoln’s annuities business and has responsibility for the team’s engagement with Lincoln’s various financial services regulators, including the SEC, FINRA, and state insurance and securities regulators.
Michael D. Wheatley is Vice President, Regulatory Counsel at Lincoln Financial Group. Mr Wheatley leads a team of legal and compliance personnel and regularly engages with the company’s financial services regulators.
