“The Department’s number one priority is individual accountability… Whether wrongdoers are on the trading floor or in the C-suite, [the DOJ] will hold those who break the law accountable, regardless of their position, status, or seniority.”
— General Lisa O. Monaco, Deputy Attorney, United States Department of Justice
Explore the recent SEC Rule 17a-4 update and how it will personally affect your firm and you. Consider how the Department of Justice’s increased focus on the need to reframe accountability, specifically individual accountability, to build a culture of compliance. Learn seven best practices to keep up with the always-changing landscape of compliance.
What Does the SEC Rule 17a-4 Update Mean for You?
The Securities and Exchange Commission (SEC) has updated its Electronic Recordkeeping Requirements, including SEC Rule 17a-4, in the first change to its recordkeeping requirements in 25 years. There are a few essential items of note in this update. The write-once/read-many (WORM) format will no longer be required, so firms can store information on their servers. Next, a Designated Executive Officer (DEO) of the firm can be an alternative to a Designated Third Party (D3P) to provide access to the firm’s electronic records. Additionally, for the first time, these requirements will apply to nonbank security-based swap dealers and major security-based swap participants. Learn more about how this will affect your firm, how it will impact you personally, and more.
Reframing Accountability to Meet the New DOJ Guidance
The DOJ has an increased focus on accountability. In a recent speech, Deputy attorney general Lisa O. Monaco indicated that “the Department’s number one priority is individual accountability. Whether wrongdoers are on the trading floor or in the C-suite, [the DOJ] will hold those who break the law accountable, regardless of their position, status, or seniority.” This clearly stated commitment to pursuing the perpetrators of corporate crime should grab the attention of all organizational stakeholders. A culture of compliance is built through individual accountability from the bottom up. An effective bottom-up accountability approach should mitigate the potential costs of misconduct and afford the business increased insight into its endemic issues. It should also provide a deeper understanding of what is refraining the organization from pursuing opportunities for ethical growth.
How Regulatory Rulings Shape Compliance Best Practices
How do you ensure that your business complies with every law, rule, and regulation that governs its operations? Are you doing everything you can to write sound policies, monitor compliance, and respond to issues? One key way is to stay on top of what’s happening in your industry and anticipate what’s next. Document everything—written policies and audit trails are important in showing what has been done and why. Understanding the technology you’re using, and the data you’re generating is also important. It’s challenging to keep up with the ever-shifting landscape of compliance, but following these seven best practices can set your business up for success.
