US Securities and Exchange Commission’s announcement of chief of Foreign Corrupt Practices Act unit signals possible anti-bribery enforcement focus on non-United States issuers

Abstract

Purpose

This paper explains how recent statements by the US Securities and Exchange Commission’s (SEC’s) leadership – including the new Chief of the SEC’s Foreign Corrupt Practices Act (FCPA) Unit – signal the American regulator’s intent to “level the playing field” by stepping up its investigations and enforcement of companies worldwide and what non-US issuers can do to prepare.

Design/methodology/approach

Uses information included in the announcement naming Charles E. Cain as Chief of the SEC’s specialized FCPA Unit to lay out an argument that the Unit’s priorities may focus more on non-US companies than US companies.

Findings

Based on past statements and written accounts made by Mr Cain, and with the tacit support of other senior SEC officials, it can be assumed that non-US companies will experience additional scrutiny from the SEC, in the name of leveling the playing field. Furthermore, it can be assumed that the SEC will place additional pressure on anti-corruption regimes in other international jurisdictions to do their part in combatting corruption.

Originality/value

This paper is of value to personnel within non-US issuers who are responsible for creating and enforcing their organization’s anti-bribery or anti-corruption policies and internal controls. It is also of value to legal counsel interested in developing an understanding of the current priorities of the SEC as far as the FCPA is concerned.

Citation

Sanders, J.L., Bahr, K., Chan, C. and Hewetson, C. (2018), "US Securities and Exchange Commission’s announcement of chief of Foreign Corrupt Practices Act unit signals possible anti-bribery enforcement focus on non-United States issuers", Journal of Investment Compliance, Vol. 19 No. 1, pp. 31-34. https://doi.org/10.1108/JOIC-02-2018-0008