The award-winning Compliance into the Weeds is the only weekly podcast that takes a deep dive into a compliance-related topic, literally going into the weeds to explore a subject more fully. Are you looking for some hard-hitting insights on sanctions compliance? Look no further than Compliance into the Weeds! In this episode, Tom and Matt consider the recent SEC pre-taliation enforcement action involving DE Shaw.

The recent $10 million settlement by financial services firm De Shaw over a retaliation case has sparked a significant conversation about whistleblower policies. This case, the largest of its kind, centered around employment agreements that prohibited employees from speaking to governmental agencies without company authorization, a practice that has been illegal since 2011 under the Dodd Frank Act. Matt views this as a significant issue, emphasizing the need for clear processes and alignment between policies and employment templates. He also expresses surprise at the rarity of instances where pretaliation clauses actually deter whistleblowers, suggesting that the problem lies in the language used in employment agreements.

Tom sees this as a problem of process. He believes that companies need to have a clear process in place to ensure that changes in employment policies are reflected throughout all relevant documents and agreements. He criticizes companies like De Shaw for updating their policies but failing to update their employment templates, which led to the inclusion of language that prevented whistleblowers from coming forward. Join Tom Fox and Matt Kelly as they delve deeper into this topic on the Compliance into the Weeds podcast.

Key Highlights:

Largest pre-taliation settlement in financial services
Persistent Non-Compliance Issues with Dodd Frank
The Rise of Multimillion-Dollar Penalties

Resources:

Matt in LinkedIn

Tom

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DE Shaw Enforcement Action for Pre-taliation