The Guide to Monitorships: The Securities and Exchange Commission

Rachel Wolkinson contributed to the second edition of Global Investigations Review’s The Guide to Monitorships. Her chapter "The Securities and Exchange Commission" focuses on monitorships imposed by the U.S. Securities and Exchange Commission.

An excerpt from her chapter in the second edition of The Guide to Monitorships is below.

In enforcement matters, the US Securities and Exchange Commission (SEC) routinely requires companies, broker dealers, investment advisers and others to engage a monitor when there is a concern that a defendant organisation does not have effective internal compliance programmes or internal control systems to prevent the recurrence of the misconduct identified by the government investigation. A compliance monitor is appointed, therefore, as ‘an independent third party who assesses and monitors a company’s adherence to the compliance requirements of an agreement that was designed to reduce the risk of recurrence of the company’s misconduct’.