There are really three situations where the Commission typically brings enforcement actions against compliance personnel:
- where compliance personnel affirmatively participated in misconduct unrelated to the compliance function;
- where they misled regulators; and
- where there was a wholesale failure by them to carry out their compliance responsibilities.
The first category is easy: being a member of the compliance function is not a “get-out-of-jail” card, so when compliance officers violate the securities laws in ways that have nothing to do with exercising their compliance responsibilities, they are held accountable just like anyone else.
‘Enforcement 40’ for 2020
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