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10 For 10

10 For 10: Top Compliance Stories For the Week Ending August 12, 2023

Welcome to 10 For 10, the podcast which brings you the week’s Top 10 compliance stories in one podcast each week. Tom Fox, the Voice of Compliance brings to you, the compliance professional, the compliance stories you need to be aware of to end your busy week. Sit back, and in 10 minutes hear about the stories every compliance professional should be aware of from the prior week. Every Saturday, 10 For 10 highlights the most important news, insights, and analysis for the compliance professional, all curated by the Voice of Compliance, Tom Fox. Get your weekly filling of compliance stories with 10 for 10, a podcast produced by the Compliance Podcast Network.

  • ABA agrees to new client due diligence rules. (WSJ)
  • US broadens sanctions against Belarus. (WSJ)
  • US, UK & Canada sanction Lebanon ex-central banker. (Reuters)
  • Lawyers say proposed PCAOB will threaten attorney-client privilege. (FT)
  • Federal judge says we need world ABC court. (WaPo)
  • More messaging app non-compliance fines. (WSJ)
  • Albemarle makes FCPA settlement reserve. (WSJ)
  • Catching pandemic fraudsters. (NYT)
  • Anti-corruption Presidential candidate is assassinated in Ecuador. (CNN)
  • Ex-Allianz manager to face $7bn criminal fraud claim. (Reuters)

You can check out the Daily Compliance News for four curated compliance and ethics related stories each day, here.

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Kerrville Weekly News Roundup

Kerrville Weekly News Roundup: August 12, 2023

Welcome to the Kerrville Weekly News Roundup. Each week, veteran podcaster Tom Fox and his colleagues Andrew Gay and Gilbert Paiz get together to go over a couple of their favorite stories from the past week from Kerrville and the greater Hill Country. Sit back, enjoy a cup of morning coffee and listen in to get a wrap up of the Kerrville Weekly News. We each consider two of our favorite stories and talk about the upcoming weekend’s events which will enjoy or participate in this weekend.

In this episode, Tom, Gilbert and Andrew discuss the following stories which caught their attention over the past week.

·      Tom discusses Midnight Madness at Tivy High School and the 2023 Inductees to the KISD Sports Hall of Fame. Tom shouts out to the Museum of Western Art and the Billy Schenck works currently on exhibit.

·      Andrew lamented the chopping down of the Founder’s Tree by the Cailloux Foundation. He talked about the heat and need for rain and highlighted last week’s business expo.

·      Gilbert talked about this Tax-Free Weekend and the Community Foundation grants for local non-profits. He said he and his family would be shopping this week for school supplies in anticipation of Monday start of the new school year.

Resources

Tom Fox on LinkedIn

Gilbert Paiz on LinkedIn

Andrew Gay on LinkedIn

Texas Hill Country Podcast Network

Categories
Daily Compliance News

Daily Compliance News: August 11, 2023 – The New DD Rules Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance brings to you compliance related stories to start your day. Sit back, enjoy a cup of morning coffee and listen in to the Daily Compliance News. All, from the Compliance Podcast Network. Each day we consider four stories from the business world, compliance, ethics, risk management, leadership or general interest for the compliance professional.

  • ABA agrees to new client due diligence rules. (WSJ)
  • US broadens sanctions against Belarus. (WSJ)
  • US, UK & Canada sanction Lebanon ex-central banker. (Reuters)
  • Lawyers say proposed PCAOB will threaten attorney-client privilege. (FT)
Categories
Blog

Navigating Go-to-Market Security and Data Privacy

I recently had the opportunity to visit with Jason Patel, with Cheq.ai, a global leader in go-to-market security. We had the opportunity explore the importance of protecting businesses and customers, leveraging data for marketing strategies, and complying with privacy regulations like GDPR and CCPA.

Patel believes that one of the top mistakes companies make is underestimating the extent of compliance regulations, such as GDPR, and only making surface-level changes. Compliance is a cross-functional requirement that affects operations, marketing, revenue, and customer engagement. It is crucial for businesses to take full responsibility for data protection instead of relying solely on vendors. Lack of visibility and control over data once it enters someone else’s servers is a genuine concern.

When it comes to safeguarding businesses and customers, it is important to have a technology solution that sits in the browser, monitoring data collection and data sharing partners. Such a solution takes into account both company policies and end users’ preferences regarding data tracking and sharing. The goal is to provide a transparent layer that seamlessly operates until a change or new partner needs to be introduced.

Real-time compliance is critical due to the speed of data collection and the need to adapt to evolving technologies and practices. Compliance in this area involves understanding and engaging with end users without resorting to invasive tracking methods. It is about respecting user choices and immediately stopping data collection when requested. This not only ensures compliance but also builds trust and loyalty with customers.

I took a deep dive with Patel into the refinement of laws and regulations regarding businesses and the internet. As the internet becomes an increasingly integral part of society, regulations are being addressed in the digital ecosystem. Clarity on data transfer and identification in the ad tech space is essential. Questions are being raised about how vital services on the web should be governed and managed. Striking a balance between trading data for services and avoiding excessive data trading is a key consideration. Monitoring of these initiatives are critical for any compliance professional in the data privacy space.

Complying with privacy regulations is one of the key challenges of digital marketing organizations in mind. The focus is on controls-driven workflows rather than procedural workflows to maintain efficiency and minimize risks. The gold standard for data privacy protection is GDPR, which shares similarities with other legislation such as the CPRA in terms of data usage, disclosures, and consumer rights. Complying with GDPR can already cover a significant portion of the requirements for other legislations, making it a crucial framework to follow.

Opt-in and opt-out strategies are debated in the United States. While opt-out is preferable for businesses, an opt-in approach, similar to the GDPR model, is more comfortable for end users. The opt-in approach sets up a good compliance posture and encourages meaningful engagement with users. Indeed this standard would appear to be what the rest of the world is moving towards. Technology standards are moving towards responding to consumer choices before legislation catches up.

I see data privacy as a leading issue in the next few years, even up to it being addressed more explicitly at the Board level. Enforcement actions for privacy regulations are only going  to increase. GDPR and CCPA are prime examples of privacy regulations that have been implemented. It is essential for both B2C and B2B businesses to prioritize customer privacy to build trust and maintain a competitive edge. By doing so, such businesses can create a true business differentiator for themselves and compliance professionals can build more trust within corporate organizations. Even if the US Congress continues to be unable to pass national data privacy standard, the EU example of GDPR will continue to be the gold standard for the world and the one to which companies should aim to comply with going forward.

In this insightful conversation Jason Patel and myself have explored the world of go-to-market security, market intelligence security, and customer privacy enforcement. We consider the importance of protecting businesses and customers, complying with privacy regulations, and respecting user choices. By focusing on real-time compliance and engaging with end users, a company can navigate the complex landscape of data privacy and security. As data privacy continues to gain prominence, it is crucial for businesses to stay informed, adapt to evolving regulations, and prioritize the privacy rights of their customers.

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31 Days to More Effective Compliance Programs

One Month to a More Effective Compliance Program: Day 9 – Clawbacks

In this podcast series, host Tom Fox explores the growing emphasis on clawback provisions in compliance programs and employee compensation.

Tom Fox delves into the crucial topic of clawback provisions in compliance programs and employee compensation. In light of the Department of Justice (DOJ) and Securities and Exchange Commission (SEC) prioritizing individual accountability for misconduct, clawbacks have become essential in promoting ethical behavior and ensuring compliance. So, let’s dive in and explore the significance of clawbacks in today’s evolving compliance landscape.

Understanding Clawbacks and Incentive-Based Compensation:

Clawbacks, as discussed in the podcast, are provisions that enable organizations to reclaim incentive or bonus funds from employees engaged in misconduct. They serve as a powerful deterrent and hold individuals accountable for their actions. Previously, clawbacks were not seen as necessary, but the DOJ now mandates their inclusion in compensation agreements.

The DOJ’s Focus on Ethical Business Practices:

The DOJ, in its pursuit of punishing officers and employees who fail to conduct business ethically, has made clawbacks a part of best practices compliance programs. To evaluate a company’s compliance program, the DOJ and SEC consider whether the organization has appropriate disciplinary procedures in place. Publicizing disciplinary actions internally and under local law can have a deterrent effect, emphasizing the importance of transparent consequences for misconduct.

The Role of Clawbacks in Compliance Programs:

Having clawback provisions is now seen as a crucial aspect of a good corporate compliance culture. It promotes compliant behavior and demonstrates a company’s commitment to its compliance program. The DOJ investigates whether corporations have included clawback provisions in their compensation agreements and taken steps to execute on such agreements. This highlights the significance of documenting and reflecting these policies and procedures in a company’s own compensation practices.

The SEC’s Final Rule on Clawbacks:

The SEC’s final rule, titled “Listing Standards for Recovery of Erroneously Awarded Compensation,” directs issuers to establish policies for recovering incentive-based compensation in the event of required accounting restatements. This rule applies to both Big R and Little R restatements and provides guidance in the anti-corruption world. Companies are now required to claw back incentive compensation erroneously received by current or former executives during the three-year period preceding the required restatement date.

Ensuring Compliance with Clawbacks:

It is essential for companies to construct well-documented clawback programs that align with the SEC’s guidance. The recoverable amount may differ from what executives would have received based on the required restatement, emphasizing the need for clarity and transparency in compensation agreements. Additionally, the SEC’s final rule prohibits companies from obtaining indemnity insurance to protect executives from clawbacks, further reinforcing the importance of accountability.

Conclusion:

As we’ve explored in this episode, clawbacks play a vital role in promoting ethical behavior and compliance within organizations. The DOJ’s emphasis on individual accountability and the SEC’s final rule on clawbacks demonstrate the evolving landscape of compliance. By implementing well-documented clawback provisions, companies can deter misconduct, hold individuals accountable, and showcase their commitment to ethical practices. Remember, incorporating clawbacks into your compliance program is not just a regulatory requirement but a practical step towards fostering a culture of integrity and responsibility.

 Three key takeaways:

1. The DOJ now mandates clawbacks in a compliance program.

2. The SEC has passed a clawback rule apart from the Monaco Memo.

3. Your clawback program should be well-documented.

For more information, check out The Compliance Handbook, 4th edition, available on LexisNexis.com.

Categories
Diabetes: The Metabolic Bully

Diabetes: The Metabolic Bully – Introduction to Podcast

Welcome to “Diabetes: The Metabolic Bully,” where we delve deep into the world of one of the most prevalent chronic conditions that lurks in our society. Diabetes doesn’t just knock on our doors; it bullies its way into our lives, altering our metabolism and dictating our daily routines.

In each episode, we aim to unpack the science and myths surrounding diabetes. From understanding how our bodies succumb to this metabolic bully, to the latest research and treatments, our podcast aims to provide listeners with comprehensive insights.

In this inaugural episode, Dr. Byron Black, an expert in exercise science and health promotion, emphasizes the importance of a holistic approach to fitness and wellness in a podcast episode with Tom Fox. He discusses his background in the Air Force, where he served as a ground radio technician and later worked as a base exercise physiologist and fitness director.

Dr. Black now runs a fitness clinic in Kerrville, Texas and advocates for a comprehensive approach to overall well-being. He also provides insights on managing diabetes through exercise and proper nutrition, highlighting the importance of seeking guidance from healthcare professionals. The episode emphasizes the interconnectedness of various aspects of health and the need for collaboration among professionals in providing comprehensive care.

Join us as we confront diabetes head-on, empowering ourselves with knowledge, compassion, and resilience. Whether you’re newly diagnosed, a long-time warrior, or simply someone keen to learn, this podcast is your go-to guide in the vast world of blood sugars, insulin, diet, and beyond. Together, we’ll stand up to diabetes, the metabolic bully that has picked on too many for too long.

Key Highlights

·      Academic and Professional Background

·      Fitness and Holistic Wellness

·      The Impact of Diabetes

·      Diabetes and Fitness

Resources

Medical Fitness Clinic of Kerrville

Categories
The ESG Report

The ESG Report – Yoram Ashery – Unlocking the Power Within: Nostromo’s Clean Energy Storage

The ESG Report podcast is hosted by Tom Fox. Looking for innovative solutions to tackle climate change? Look no further than The ESG Report! In this episode, Tom speaks with Yoram Ashery, CEO at Nostromo Energy and we discuss zero carbon energy storage.
In this episode, we discuss Nostromo Energy’s innovative clean energy storage technology for buildings. By storing cold energy in small cells filled with water, buildings can become giant batteries, reducing dependence on the grid and advancing the energy transition. The use of cloud-based energy storage management allows for remote control and optimization of energy storage systems, creating a virtual power plant that responds to grid demands. This technology offers environmental benefits, and financial advantages, and helps in reducing carbon emissions. The podcast also highlights the challenges and solutions in transitioning to clean energy, emphasizing the need for capital, regulation, consumer participation, and innovative technologies like Nostromo.

Key Highlights

·       Nostromo Energy: Clean Energy Storage

·       Cloud-based energy storage management

·       Clean energy storage and carbon reduction

·       Renewable Energy Revolution

·       Challenges and Solutions in Transitioning to Clean Energy

Resources

Yoram Ashery on LinkedIn

Nostromo Energy

Tom Fox 

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Daily Compliance News

Daily Compliance News: August 10, 2023 – The Leaving China Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance brings to you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee, and listen in to the Daily Compliance News. All, from the Compliance Podcast Network. Each day we consider four stories from the business world, compliance, ethics, risk management, leadership, or general interest for the compliance professional.

  • Dentons leaving China. (NYT)
  • Biden Administration bans investment in Chinese tech. (WSJ)
  • Kellogg cereal workplace attacked as ‘woke.’ (Reuters)
  • Eradicating toxic team behavior. (FT)
Categories
31 Days to More Effective Compliance Programs

One Month to a More Effective Compliance Program: Day 8-Executives and Compliance Compensation Incentives

The lack of personal consequences for senior executives responsible for corporate malfeasance is explored in this podcast episode. Executives are incentivized to take excessive risks, knowing they won’t have to pay any fines, while shareholders bear the brunt of penalties. Proposed solutions include the concept of “skin in the game,” where executives contribute a portion of their compensation to a pool of money that can be used to pay penalties. Another suggestion involves forfeiting the performance bond of senior management in the case of large fines. A third approach suggests creating a contract that would enforce a reduction in pay for failures of corporate governance. These proposals aim to hold senior executives personally accountable for compliance failures and align executive compensation with compliance objectives. HR professionals play a crucial role in designing and implementing positive incentives to foster a culture of compliance and ethical conduct within organizations.

When it comes to compliance failures, the penalties are usually paid by shareholders, leaving senior executives largely untouched. This lack of personal accountability creates a disconnect between executive actions and the consequences of those actions. It’s high time we bridge this gap and ensure that senior executives are held personally responsible for compliance failures. What are some proposed solutions:

1. “Skin in the Game”. One proposed solution, advocated by William Dudley, former president of the Federal Reserve Bank of New York, suggests that senior management and material risk takers should forfeit their performance bond in the case of large fines. This approach would discipline individual behavior and decision-making, incentivizing individuals to flag issues when problems arise.

2. Automatic Pay Reductions. Another approach, proposed in an article titled “Ties That Bind Codes of Conduct,” suggests automatic reduction of pay for officers, directors, and advisors for failures of corporate governance. Executives would agree to pay back a portion of their gross compensation for a specified period before the beginning of any improprieties, regardless of their knowledge of misdeeds within the company.

Benefits of Accountability for Senior Executives:

1. Aligning Incentives. Corporate leaders cannot afford to turn a blind eye to compliance failures anymore. Holding senior executives accountable ensures that their compensation is directly tied to compliance objectives, aligning incentives and promoting ethical business practices.

2. Addressing Perverse Incentives. Perverse incentives in corporate pay, such as additional compensation based on company performance, can lead to unethical behavior and non-compliance. By implementing accountability measures, we can address these perverse incentives and create a culture of ethical behavior within organizations.

3. Driving Positive Change. Creating positive incentives within organizations is crucial to driving ethical behavior and compliance. HR professionals play a pivotal role in designing and implementing these incentives, ensuring that they are effective in promoting a culture of compliance.

Three key takeaways:

1. Perverse incentives are named that for a reason; they really are bad.

2. How can you create positive incentives in your organization?

3. There is a business response to this legal issue. Employ it.

For more information, check out The Compliance Handbook, 4th edition, available on LexisNexis.com.

Categories
It's art

It’s art, let’s talk about it – Billy Schenck – Painting Contemporary Western Art

The Museum of Western Art is dedicated to excellence in the collection, preservation, and promotion of Western Heritage and the education and cultural enrichment of our diverse audiences. The Museum serves as a bridge between the past and the present, ensuring that the legacy of the American West will be preserved for the future. Western Art is as engaging and important as ever. In this podcast series, Museum Executive Direct Darrell Beauchamp visits with the artists who work in this western heritage to talk about their work, the legacy of Western Art and why talking about it is so important today.

In this episode, we will be exploring the artistic journeys of Billy Schenck, who has left an indelible mark on the Western art genre, pushing boundaries and creating captivating works that merge pop art with photorealism. Join us as we uncover their unique approaches, discuss their notable series, and delve into the challenges they faced in the art world.

Schenck’s artistic style is a testament to his ability to blend pop art with photorealism seamlessly. He reveals his unconventional approach to creating imagery by utilizing the paint-by-numbers technique. This technique allowed him to produce convincing images, even without traditional drawing or painting skills. His first gallery show in New York City was a resounding success, selling out before it even opened. This early triumph set the stage for a prolific career that would span over five decades.

One of Schenck’s notable series is the Phaedra series, which showcases nude cowgirls riding in the Mythic West. This series captures the essence of the Western genre while adding a contemporary twist. Additionally, Beauchamp has created captivating series centered around surfer girls and landscapes, particularly in the Southwest. Notably, he started incorporating landscapes without figures around 1999-2000, using big clouds and sweeping vistas to evoke a sense of awe and grandeur in his paintings.

Schenck’s unique artistic vision often placed him on the edge of the mainstream Western art world. He faced challenges in New York City, where Western subject matter was not considered contemporary. However, he persisted and refined his painting style, ultimately gaining recognition and exhibiting alongside renowned artists such as Andy Warhol and Roy Lichtenstein.

Schenck’s dedication to preserving and promoting Western art extends beyond his own work. He has purchased a plot of land to build the Billy Shank Museum and Foundation, which will showcase his body of work and his personal collection of contemporary Western painters. Additionally, the foundation aims to preserve a world-class collection of prehistoric pottery and the archives of the Membranes Foundation and other amateur archaeologists. This initiative provides a safe space for collectors to donate their collections, ensuring their legacy lives on.

Billy Schenck has made significant contributions to contemporary Western art, pushing boundaries and challenging traditional norms. His unique style, blending pop art with photorealism, has captivated audiences worldwide. Despite facing challenges, Schenck has left an indelible mark on the art world, showcasing the importance of preserving and promoting Western art.

Remember to visit the Museum of Western Art in Kerrville, Texas, to explore the rich tapestry of Western art and support these talented artists.

So, why should you listen to this episode? If you’re an artist yourself, or simply someone who is interested in the creative process, Schenck’s story offers inspiration and insight into what it takes to pursue a career in art. As hosted Darrell Beauchamp has noted, “We’ll talk about why talking about Western art is so important.”

 Resources

Museum of Western Art

Darrell Beauchamp on LinkedIn

Billy Schenck