In one of the most intense work environments throughout the country, Wall Street is starting a new trend by tightening up security with giving more liability to compliance officers with illegal activity by traders. In light of recent scandals where compliance officers were found to be responsible for some critical mistakes, the SEC administration along with New York State governor Andrew Cuomo wants to be able to charge compliance officers for mistakes that occur on their own watch.
Compliance officers in general feel that this is unfair as they feel singled out for being responsible for mistakes that are not always controllable on their part. Many large banks and corporations have hired compliance officers to avoid massive fines. However, many compliance officers will argue that getting banks to adapt to a legal process is cumbersome and a long term adjustment. However, there is concern that companies who hire compliance officers are providing them high salaries to act as independent as possible and to limit communication they have with the chief officers of companies to limit knowledge of such violations.
The corruption in company compliance was well addressed from 1999 to 2007 when Morrison was a regional SEC director that headed securities enforcement, as well as litigation and regulatory issues. Helane Morrison pointed out that some companies were practically buying real estate from themselves that were creating false profits, while other companies were found to not have a substantial amount of their own employees actively engaged with insider trading. (quotehd) These are some of the compliance issues that went unnoticed that have led to major fines for some companies, while others got away with illegal schemes.
Morrison, who now works as Managing Director, and Chief Compliance Officer of Hall Capital Partners LLC, has represented the SEC in legal, business, and financial communities, along with numerous government agencies and media outlets. It is through Morrison’s testimony and historical data that the necessity that it is necessary to start holding Compliance officers liable for trading violation in an effort to force these officers to push harder on the companies they monitor to perform business in a legal way.
To read more about Helane’s career and life check out her LinkedIn profile or click on the following link: http://www.projecteve.com/helane-morrison-shattering-glass-ceiling-corporate-world/