Skadden Discusses Approach of SEC Enforcement Division To Compliance Officer Liability

The CLS Blue Sky Blog

Anita B. Bandy Andrew M. Lawrence Daniel Michael Hannah Henderson

Partners Anita Bandy, Andrew Lawrence and Daniel Michael and associate Hannah Henderson discuss scenarios in which the SEC would bring an enforcement action against a compliance officer, as described by the Enforcement Division’s director, including when an officer:

  • Engages in misconduct unrelated to their compliance role.
  • Purposely misleads regulators.
  • Entirely fails to carry out their compliance responsibilities.

The authors provide tips to help compliance officers stay up to date and take reasonable steps to ensure that they and their organizations comply with federal securities laws.

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