When corporate misconduct comes to light, the Securities and Exchange Commission (SEC) may require companies, broker / dealers, investment advisers and others to engage a compliance monitor as part of a settled enforcement action. But what can an organization expect when the SEC imposes a monitor? And how will the appointment of a monitor impact a company’s day-to-day operations?
In “SEC-Imposed Monitors,” Chapter 8 of PLI’s SEC Compliance and Enforcement Answer Book (2021 Edition), Jonny Frank, DOJ-appointed Independent Compliance and Business Ethics Monitor to Deutsche Bank, DOJ Independent Auditor to a Top 5 automotive manufacturer, remediation consultant to a Northern European bank, and Ethics & Compliance adviser to the SEC-appointed Independent Consultant of a large public accounting firm, provides real-world insight into what companies can expect when working with a monitor. He also addresses SEC and DOJ guidance for determining whether to impose a monitor, the monitor’s responsibilities and other terms of the monitor’s engagement.
Celina Borawski, a Senior Consultant with StoneTurn, also served as an author of this chapter.