Compliance Blog

 

 

RSS Feed

Get updated with our daily blog post!

Enter your Email:


 

 

Categories

SEC’s Division of Investment Management issues new Cybersecurity Guidance

There’s certainly no shortage of media attention on data security breaches lately, and there’s a good reason for that: such breaches are at an all-time high. Against this backdrop of the ever-increasing risk of malicious cyberintrusion, businesses are expected to improve their data security policies commensurately. And those companies that store the most sensitive customer data – the most tempting targets to data thieves – have the most to lose from such cyberattacks. Undoubtedly, registered investment companies (“funds”) and registered investment advisers (“advisers”), being responsible for managing the assets of high net-worth investors, represent such tempting targets for cybercriminals. 

EEOC releases proposed rule on employee wellness programs

On April 16, the Equal Employment Opportunity Commission (EEOC) issued a Notice of Proposed Rulemaking (NPRM) setting forth the commission’s interpretation of how Title I of the Americans with Disabilities Act (ADA) applies to employer wellness programs that are part of group health plans. Specifically, the EEOC is providing guidance on how it views the definition of “voluntary” as it pertains to employer inquiries into employees’ health or employer requirements for employees to undergo medical examinations – both of which are prohibited by the ADA unless they are “voluntary” and part of an employee wellness program.

Religious Accommodation Claim Depends on Definition of “Religion”

Every year, the Equal Employment Opportunity Commission (EEOC) files numerous religious accommodation claims on behalf of employees, pursuant to Title VII of the Civil Rights Act of 1969 (Title VII). These cases often involve discerning the intentions of the employer and how aware it was of an employee’s religious practices. Also often at issue is how easy it would be for the employer to accommodate the employee. A recent religious accommodation case out of California, though, turns on a completely different issue: whether the employee’s religion is truly a religion.

Tax Preparation Company Sued For Failing to Prevent Fraud

A major tax preparation company was in a great deal of hot water over fraud issues this past tax season. And now, to make matters worse for the company, it appears to be facing multiple class action lawsuits. Plaintiffs’ attorneys filed suit on April 20, 2015, claiming that the company’s poor security measures were responsible for recent fraudulent tax filings.

EEOC Victory Reversed for Improper Direct Threat Standard

The Equal Employment Opportunity Commission (EEOC) recently experienced a particularly painful loss, as a former “win” was reversed. In March, the 10th District Court of Appeals ruled that an EEOC victory was erroneous due to improper jury instructions, and reversed the jury verdict. Indeed, details are important in jury instructions, but that is not the only takeaway from this case. Employers would be interested to know that the jury instructions in question involved the details of an important employment law defense: the “direct threat” standard. 

Asset Management Firm Pays $12 Million in Settlement of SEC Conflict of Interest Case

The United States Securities and Exchange Commission (SEC) is showing new vigor in enforcing conflict of interest cases within asset management firms. Earlier this year, an SEC spokeswoman mentioned that the Commission has unearthed various violations of this type, and plans to take action against the companies. The first such action revealed itself in mid-April, with a large asset management firm agreeing to a $12 million settlement. Notably, this is the first time the SEC has ever taken action against a company for failing to disclose a compliance matter to a fund board.

Sixth Circuit Reverses its Decision on Telecommuting as an ADA Accommodation

Telecommuting is becoming increasingly common as technology allows workers to be ever more “present” in the workplace without actual physical presence. With this trend, the question of telecommuting as a reasonable Americans with Disabilities Act (ADA) accommodation has arisen; thus, the courts have been addressing this, with varying outcomes. The contentious nature of this issue is apparent as the Sixth Circuit Court of Appeals made an en banc ruling on April 10, 2015, overturning an earlier panel ruling from last year on an EEOC case involving telecommuting.

Social Awareness Programs: Good for Business or Legal Risk?

Despite good intentions and previous success taking a stand on contentious issues — i.e., gun control and gay marriage — a coffee company quickly realized its campaign to encourage discussions of race relations between employees and customers was a mistake. As a result, in the face of those questioning whether these discussions were appropriate, as well as those calling attention to the enormous legal risks presented by such a campaign, the company aborted the campaign after only a week.

Newest Whistleblower Award Reveals Possible Trend for Compliance Personnel and Company Officers

The Securities Exchange Commission (SEC) continues to reward whistleblowers through Dodd-Frank’s bounty program. On April 22, the SEC announced an award of more than one million dollars to a whistleblower who provided useful information to the commission that assisted in bringing a successful enforcement action against the whistleblower’s company. Since the program’s launch in 2011, the SEC has paid out more than $50 million to 16 whistleblowers, with a record $30 million paid out in September 2014.

EEOC Settles Landmark Transgender Discrimination Case

An historic Equal Employment Opportunity Commission (EEOC) settlement was approved by the U.S. District Court in Tampa, Florida, on April 9, 2015. The suit was one of only two gender-identity discrimination claims ever filed by the EEOC; the other such case is still on-going. These claims are the EEOC’s newest efforts in implementing its Strategic Enforcement Plan (SEP), created in 2012, and intended to prioritize enforcement of Title VII gender discrimination provisions for LGBT individuals.

ACC Alliance Partner
Thomson Reuters