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The Compliance Life

Maria D’Avanzo – Moving into the CCO Chair

The Compliance Life details the journey to and in the role of a Chief Compliance Officer. How does one come to sit in the CCO chair? What are some of the skills a CCO needs to success navigate the compliance waters in any company? What are some of the top challenges CCOs have faced and how did they meet them? These questions and many others will be explored in this new podcast series. Over four episodes each month on The Compliance Life, I visit with one current or former CCO to explore their journey to the CCO chair. This month, my guest is Maria D’Avanzo. We discuss Maria’s journey from a real estate and probate lawyer to compliance, then CCO chair, and now as the Chief Evangelist Officer at Traliant.

After for 2.5 years at AIG, Maria moved to Cushman & Wakefield where she became the Chief Ethics and Compliance Officer and Chief Data Privacy Officer. In this role, she led an innovative and commercially focused global compliance and privacy team to support ethical decision-making and risk management needs of Cushman & Wakefield, a global leader in commercial real estate services with 53,000+ employees worldwide, where she learned that compliance is one of the hardest jobs (if not the hardest) in any company.  To be effective, employees need to know who you are, trust and have faith in you, and see your “human side”.  One of Cushman & Wakefield’s CEOs taught me that the best way to accomplish this is to go to where the employees are and listen to them over a cup of coffee.

Resources

Maria D’Avanzo LinkedIn Profile

Traliant.com

Categories
Role of the Board of Compliance

Introduction to the Role of the Board In Compliance

This is Tom Fox, The Compliance Evangelist.

I want to welcome you to a new special video podcast series I’m doing with my co-host, Jonathan T. Marks, from Baker Tilly.

In this podcast series, we’ll look at the changing and expanding obligations of the boards of directors of U.S. public companies around compliance, known as the Caremark Doctrine. We’ll discuss how and when it was created and what it means for the modern corporate board in 2022.

It will be a fascinating exploration of a series of law cases from Delaware, which has greatly changed the obligations of boards of directors and made them enter global parts of a corporate compliance program.

I hope you will join us and see how the requirements of Caremark have strengthened corporate compliance programs, made boards of directors more effective, and how all of this ties directly into modern ESG.

Thanks so much for listening.

Stay tuned and enjoy the Role of the Board in Compliance.

Categories
Innovation in Compliance

Enter The Metaverse with James Shannon

 

James Shannon is the founder and CEO of Xone, a mixed reality platform that makes it easy to build, share and interact inside virtual worlds. Their mission is to create a bridge into the metaverse using familiar social media interfaces and immersive environments, to onboard creators into Web 3.0. He and Tom Fox talk about Xone, and its place in the current technological sphere and metaverse. 

 

 

Defining Web 3.0 Terminology 

James defines key Web 3.0 terms, including NFT, metaverse, and augmented reality social media platforms. NFTs or non-fungible tokens are attached to digital assets to make them scarce using blockchain technology. The metaverse, he says, is “an interconnected series of virtual worlds that can be accessed through mixed reality devices and blockchain technology”. He explains that “augmented reality is overlaying digital information on top of the physical world”. Thus augmented reality social media will be a combination of augmented reality and social media interfaces. 

 

Bridging the Gap

Tom asks James how Xone integrates NFTs, the metaverse, Web 3.0, and augmented reality social media in a coherent framework. James responds that the biggest challenge with the Web 3.0 world is its newness: only 1% of internet users are familiar with it, and it’s quite difficult to use. He wants to make Web 3.0 more accessible and suggests that developers should help new users adopt this new technology through applications they already use, such as TikTok. “Xone is trying to bridge the gap between those social media platforms we know so well and the Web 3.0 technology that we don’t,” he tells Tom. “It merges the familiar interfaces that we’re used to on current social media apps with immersive and blockchain technology.” 

 

Are NFTs the Future?

James believes that NFTs would always have a place in Web 3.0 as they are the “gateway to the metaverse”. However, users aren’t going to have the same relationship with NFTs as they do now. “In the next 2 to 5 years, NFTs will have evolved dramatically,” he predicts. Companies, brands, and strategies would combine the NFT token with a use case. For example, musicians could sell them to fans and they would provide access to an exclusive fan club that unlocks special content, backstage passes, and discounts on future shows. 

 

Resources 

James Shannon | LinkedIn | Twitter

Xone

 

Categories
Daily Compliance News

September 20, 2022 the Stuck in the Middle with You Edition

In today’s edition of Daily Compliance News:

  • Judge nixes class rep. (Reuters)
  • Middle Managers, stuck in the middle. (FT)
  • Farewell to buying ambassadorships in the US? (WaPo)
  • Hungary to submit ABC bill. (Reuters)
Categories
Blog

Monaco Memo: A Jolt for Compliance: Part 1 – Introduction

Last week saw the announcement of two significant and related releases of information from the Department of Justice (DOJ) around Foreign Corrupt Practices Act (FCPA) enforcement and corporate compliance programs. They were the Monaco Memo and a Speech by Assistant Attorney General Kenneth A. Polite made at the University of Texas Law School. Every compliance professional should study them both.

Over the next several days, I will be blogging about each of them and other DOJ announcements. I will also have a series of podcasts about different aspects of the releases with a variety of guests including Affiliated Monitors, Inc. (AMI) founder Vin DiCianni, Morrison & Foerster LLP (MoFo) partner James Koukios and my Compliance into the Weeds co-host, Matt Kelly. The Memo is broken down into four main sections: I. Guidance on Individual Accountability; II. Guidance on Corporate Accountability; III. Independent Compliance Monitorships; and IV. Commitment to Transparency in Corporate Criminal Enforcement. Today I want to introduce each release and try to place it into the overall context of DOJ communications to the compliance community, compliance professionals and Chief Compliance Officers (CCOs).

The Monaco Memo builds on many of the topics first articulated by Deputy Attorney General (DAG) Lisa Monaco last October in a speech to the ABA White Collar Bar conference. Koukios said he had two major reactions to the Monaco Memo. First, “I think it’s great when the department puts out a Memo like this, that lays out very clearly.” It sets out the DOJ expectations which Koukios believes the DOJ strives to do for the corporate compliance professional and the white-collar defense bar, which they have done so in an iterative matter. From releases of documents such as the Phillips Memo, to the FCPA Corporate Enforcement Policy to the Evaluation of Corporate Compliance Program and its Update. He added, “I think this is another one of those really helpful memos that sets out the factors that the DOJ will consider.”

He sees the Monaco Memo going further by delineating the implications of the factors it sets out.  He went on to note, “I think that there is a lot more in this Memo than there have been in some other, more recent memos.” Moreover, it lays out multiple changes at both “a high level and at the more granular level as well.” Koukios concluded, “I think it’s a very impactful Memo that practitioners’ compliance officers and other people dealing with this space really should spend time reading and understanding.”

I visited with DiCianni on the Independent Compliance Monitorships component. DiCianni believes the Monaco Memo is both further clarification and further guidance for line prosecutors when they are considering whether or not to put a monitor in place. Echoing Koukios in this section of the Memo, he noted that it lays out both broad goals and guidelines and then drills down into specific requirements in a way “we’ve  never seen before.” Further, while many of the factors “are really quite interesting there are not really anything new and from the monitors perspectives.” And while we have seen these factors in a disparate manner, in disparate places, “here they are in writing.” Once again this echoed something Koukios told me, that perhaps the greatest significance is that the Memo sets down all of these matters in writing which leads to a blueprint for DOJ thinking and a roadmap for anyone who finds themselves in an FCPA investigation or enforcement action.

I see the Monaco Memo and the Speech as complimentary releases which drive home several key changes in DOJ enforcement. Perhaps changes is too strong, but they these announcements make clear the DOJ is dedicated to individual accountability and prosecution. Corporations will have to reorient their approach to investigations and sharing of information with the DOJ to this new approach. Next the DOJ is strongly shifting the burden in the investigatory and negotiation phases to make clear the company must come forward with evidence to support lower fines and penalties and greater discounts, particularly in the area of individual financial penalties and incentives, i.e., clawbacks. Finally, the Monaco Memo lays out not simply how to avoid a monitor but a program of proactive monitoring which can lead to the prevention of a crime before the FCPA is violation.

The Memo itself said that the DOJ had established the Corporate Crime Advisory Group (“CCAG”)  to evaluate and recommend further guidance and consideration after the Monaco Speech from October 2021. This CCAG included leaders and experienced prosecutors from “components of the Department that handle corporate criminal matters: the Criminal Division; the Antitrust Division; the Executive Office of United States” to both evaluate and provide “revisions and reforms to enhance our approach to corporate crime, provide additional clarity on what constitutes cooperation by a corporation, and strengthen the tools our attorneys have to prosecute responsible individuals and companies.”

The DOJ review considered input from “a broad cross-section of individuals and entities with relevant expertise and representing diverse perspectives, including public interest groups, consumer advocacy organizations, experts in corporate ethics and compliance, representatives from the academic community, audit committee members, in-house attorneys, and individuals who previously served as corporate monitors, as well as members of the business community and defense bar.”

The Memo itself is designed to “promote consistency across the Department” by applying it  Department-wide. Some announcements establish the first-ever DOJ-wide policies on certain areas of corporate crime, “such as guidance on evaluating a corporation’s compensation plans; others supplement and clarify existing guidance. The policies set forth in this Memorandum, as well as additional guidance on subjects like cooperation, will be incorporated into the Justice Manual through forthcoming revisions, including new sections on independent corporate monitors.”

I hope you will join me tomorrow where I look at individual accountability and internal investigations.