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Society of Corporate Compliance and Ethics Testifies at U.S. Sentencing Commission March 17, 2010 Hearing on Proposed Amendments
Date:3/17/2010

Mr. Murphy explained that the testimony he would give is focused on three points: two related to giving credit for programs despite high-level participation in misconduct, and one to suggest an additional modest revision to the Guidelines' standards related to incentives.

The SCCE supports the proposed amendment that a compliance and ethics program still be able to receive credit even if a high-level person is involved in an offense, as long as the organization has taken certain responsible steps. This change "recognizes that the involvement in an offense by one manager, whatever the position, is not the same as involvement by 'senior management,'" said Murphy.

In its testimony, the SCCE commended the Commission for its focus on "having the compliance person report to the highest governing authority as one condition for this credit," but Murphy stressed that the compliance officer's reporting authority to the board "needs to be clarified and enhanced."  

In its final point, the SCCE noted that application of the "incentives" standard, added in 2004, in practice has been limited. To underscore this, the SCCE pointed to a recent survey it conducted of its members that found incentives are being underutilized in complianc
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SOURCE Society of Corporate Compliance and Ethics
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