Board Oversight in Action: Navigating Investigations and Mitigating Penalties

Key Takeaways:

• The SEC and DOJ are imposing record-breaking financial penalties to hold wrongdoers accountable for misconduct, while also offering credit to those who proactively self-monitor, self-report, and remediate misconduct.
• As highlighted by recent cases, internal investigation procedures and remedial actions are commonly cited as key factors related to the regulator’s view of cooperation and the determination of reduced penalties.
• Boards must ensure the company has established protocols and resources to identify, investigate, discipline, and remediate violations of laws, regulations, or company policy.
• Conducting a timely and thorough internal investigation can demonstrate to regulators the Board’s commitment to compliance, potentially helping to avoid or reduce penalties and support a healthy compliance culture.
• Where misconduct is identified, the board must determine suitable corrective measures and establish an action plan.

Related Resources:

• Podcast: Audit Committee: Alleged Fraud, Now What?
• Archived Webinars: The Board’s Oversight of Fraud