Securities Activities of Banks in the GLB Era - Cleary Gottlieb Steen ...

(i) Whether the access of senior legal and compliance
personnel is regular and systematic, or ad hoc and
episodic.
(ii) Even if access is regular, whether it involves a full
analysis of compliance developments and exposures,
or is cursory.
(iii) Whether the firm’s commitment to providing
technology resources is as great for compliance as it is
for other initiatives.
(iv) Whether the firm has analyzed compliance technology
proposals that did not receive approval in prior budgets
to see if exposures are still there.
(v) Whether areas such as fixed income, stock loan and
operations have received the same level of compliance
attention as equity and investment banking.
(vi) Whether employees are truly rewarded for raising what
they perceive as compliance issues. 50
d. With respect to investment advisers/investment companies:
50 See also NYSE Information Memos No. 05-77 (October 7, 2005) (factors considered
by the NYSE Division of Enforcement in determining sanctions for violations of
statutes, regulations or rules; heightened penalties could arise as a result of failure to
implement corrective measures, neglect or disregard of “red flags” and ineffective
training or education programs), No. 05-65 (September 14, 2005) (guidance on
obligations to cooperate with NYSE reviews, examinations and investigations, and to
provide disclosure to the NYSE of violations of NYSE rules or federal securities
laws; discussion of “exceptional or extraordinary cooperation” that has the potential
to influence the NYSE to seek a reduced sanction, to decide to bring reduced or less
serious charges, to obviate the need for an undertaking, or to decide to forgo bringing
charges altogether); Wall Street Letter, December 19, 2005 (NYSE focus on physical
separation between proprietary trading and stock trading desks).
65