An article authored by Chicago partner James Lundy and associate Carrie DeLange, “Compliance and Legal Officer Guidelines to Prevent Non-Line Supervisory Liability,” was recognized as one of the National Society of Compliance Professionals’ (NSCP) “Best of 2017.”
The article provides guidance and recommendations to compliance officers and in-house attorneys for investment management and broker-dealer firms with regard to avoiding supervisory liability for the violative conduct of business personnel. Specifically, the article examines the applicable statutes and rules, the controversial “Gutfreund Standard,” and the SEC’s more recent guidance from a Division of Trading and Markets FAQ.
NSCP’s “Best of” recognizes six of the most relevant articles from the previous year. Currents is a monthly journal focused on compliance issues and other problems common to financial service firms.
The National Society of Compliance Professionals is a nonprofit, membership organization dedicated to serving and supporting compliance professionals in the financial services industry.