Franchisors More Susceptible to Misconduct Violations

Franchisors are an example of a type of corporation more susceptible to misconduct risk than others, primarily because of their reliance on international distributors. Franchisors must therefore conduct rigorous internal compliance programs to ensure they are adhering to U.S. Foreign Corrupt Practices Act (FCPA) and the U.K. Bribery Act requirements. Both regulations are international in reach and make it a crime to bribe a foreign official to secure an improper business advantage.  

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Increased Compliance Commitment by Managers Starts with T.R.U.S.T

According to U.S regulators, one of the most common reasons companies are citied for Foreign Corrupt Practices Act (FCPA) violations is they have beautifully written compliance policies and procedures that are simply not implemented or enforced. Often, the regulators say, management is to blame either through a lack of commitment to a compliance program or sometimes even purposefully trying to circumvent it 

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DOJ Demands Preventative Third-Party Risk Management

Approximately 90 percent of  Foreign Corrupt Practices Act (FCPA) enforcement actions involve a third party. That’s according to a recent article in the FCPA blog. The U.S. Department of Justice (DOJ) has taken notice, including an entire section on third-party risk management as part of its updated guidance for evaluating corporate compliance programs. 

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C-Suite Involvement Crucial to Compliance Program Sucess

Integrating the compliance function into an organization’s C-Suite not only improves crisis preparedness but also helps protect the bottom line. Performing that integration is not always so easy, however. The first roadblock is the C-level structure itself. 

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SEC Issues New Conflict Rules Amid Praise and Criticism

The U.S. Securities and Exchange Commission (SEC) approved new conflict of interest rules for brokers this past week. The regulations mandate brokers act in the “best interest” of clients. They require the financial services industry to clamp down on potential conflicts such as contests rewarding brokers for selling more securities than peers and exclusively selling their employers’ products.  

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