CINCINNATI, January 19, 2022 - Patrick D. Hayes, Partner and Investment Management practice leader at the law firm of Calfee, Halter & Griswold LLP and member of the National Society of Compliance Professionals (NSCP) Board of Directors, recently co-authored The NSCP Firm and CCO Liability Framework, a guide providing a practical approach to the topic of chief compliance officer (CCO) liability.
“As the premier financial industry organization that educates and advocates on behalf of compliance professionals, the NSCP recognized its unique position to examine the practical challenges faced by CCOs as part of the larger governance structure at regulated entities and provide context that went beyond the technical aspects of compliance as it relates to CCO liability,” said Hayes.
As a member of the NSCP’s Regulatory Advisory Committee, Hayes and the other co-authors reviewed the issue of CCO liability over the last year and assisted the NSCP by conducting surveys of its 2,000+ members to assess their views on CCO liability, empowerment and resources.
“The results of the surveys were incredibly instructive and provided the baseline for the Regulatory Advisory Committee to develop The NSCP Firm and CCO Liability Framework,” said Hayes.
The NSCP Firm and CCO Liability Framework ("NSCP Framework ") provides a practical approach to the topic and complements an earlier publication by the New York City Bar Association titled New York City Bar Association White Paper on CCO Liability. The NSCP Framework is intended to be read together with the NYC Bar Association White Paper to provide a realistic perspective regarding CCO liability issues while promoting investor protection and market integrity.
The NSCP Framework states, “To more effectively address the issue of CCO liability, the NSCP believes it is necessary to focus on the larger context of the compliance function within firms and to do so earlier in regulatory reviews, whether during examinations or enforcement investigations.” A copy of The NSCP Firm and CCO Liability Framework guide provides additional details.
In 2020, Hayes launched The Securities Compliance Podcast: Compliance in Context™, co-sponsored by Calfee and the NSCP. On Episode 10 of the podcast, which aired in January 2021, Securities and Exchange Commissioner Hester M. Peirce joined Hayes to speak in-depth on the issue of CCO Liability.
The NSCP credits Commissioner Peirce as helping to provide the spark that led to the Regulatory Advisory Committee taking up the mantle to develop the NSCP Framework.
“Commissioner Peirce has been instrumental in advancing the conversation of CCO liability, and we welcome the continued dialogue with her and the rest of the Commission on this important topic,” said Lisa Crossley, Executive Director of the NSCP.
With 7,600 listeners in 2021, The Securities Compliance Podcast: Compliance in Context was named a “Top 20 Securities Podcast of 2021” by Welp Magazine.
ABOUT CALFEE, HALTER & GRISWOLD LLP
Calfee, Halter & Griswold LLP is a full-service corporate law firm with 160 attorneys and six offices in Cleveland, Columbus, Cincinnati, Indianapolis, New York and Washington, D.C. Calfee has been recognized as a leading law firm by the Chambers USA 2021 Legal Guide in Antitrust, Banking & Finance, Corporate/M&A, Employee Benefits & Executive Compensation, General Commercial Litigation, Insurance, Intellectual Property, Labor & Employment, Natural Resources & Environment, and Real Estate and by the Chambers High Net Worth 2021 Guide in Private Wealth Law. The firm serves clients in the Midwest, nationally and globally in the areas of Business Restructuring and Insolvency, Corporate and Finance, Employee Benefits and Executive Compensation, Energy and Utilities, Estate and Succession Planning and Administration, Government Relations and Legislation, Intellectual Property, Labor and Employment, Litigation, and Real Estate. A founding member of Lex Mundi, Calfee offers international representation through a network of independent law firms with access to 22,000 attorneys located in more than 125 countries. Additional information is available at Calfee.com.
ABOUT NATIONAL SOCIETY OF COMPLIANCE PROFESSIONALS
The National Society of Compliance Professionals is a nonprofit, membership organization dedicated to serving and supporting compliance professionals in the financial services industry. NSCP membership provides financial services compliance professionals with a wide range of resources including a community of like-minded peers, continuing education to further their knowledge and specialized skills, and regulatory involvement through representation of compliance interests. Over 30 years since its inception, NSCP has grown to 2,000+ members with a plethora of educational offerings and networking opportunities for its members. Additional information is available at NSCP.org.
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