Compliance & Ethics

The Public Company Accounting Oversight Board (PCAOB) has taken decisive action against KPMG Accountants N.V. (KPMG Netherlands) and its former Head of Assurance, Marc Hogeboom, for serious violations of PCAOB rules and quality control standards. This enforcement action comes in response to widespread improper answer sharing within the firm over a five-year period, accompanied by multiple misrepresentations made to the PCAOB regarding the firm's knowledge of the misconduct.

Complaints by bank customers in Germany witnessed a staggering surge in 2023, nearly doubling from the previous year, recent figures unveiled by the country's financial regulator, BaFin, have revealed. The surge in grievances, as reported by Reuters, has sparked concerns, with a significant portion of complaints directed towards a singular financial institution.

In a recent enforcement advisory issued by the California Privacy Protection Agency (CPPA), businesses were reminded to adhere to the foundational principle of data minimization outlined in the California Consumer Privacy Act (CCPA). The advisory, titled "Enforcement Observations," highlights the significance of minimizing the collection, use, retention, and sharing of consumers' personal information.

The Securities and Exchange Commission (SEC) has announced charges against Senvest Management LLC, a registered investment adviser, for significant and long-standing failures in maintaining and preserving electronic communications, along with a failure to enforce its code of ethics. As a consequence of these violations, Senvest has agreed to a settlement that includes a $6.5 million penalty and commitments to enhance its compliance policies and procedures.

The Commodity Futures Trading Commission (CFTC) has issued an order against the Australia and New Zealand Banking Group Ltd. (ANZ), a financial services firm provisionally registered as a swap dealer, for its failure to fulfill its supervision obligations. The charges stem from ANZ's inadequacies in ensuring the effectiveness of its spoofing surveillance tool. The company has admitted to the facts presented in the order.

The Public Company Accounting Oversight Board (PCAOB) has announced disciplinary actions against five audit firms for violations related to audit documentation and disclosure of audit leaders. These sanctions, which include censures, fines totaling $130,000, and remedial undertakings, underscore the PCAOB's commitment to enforcing compliance with its rules and standards.

the U.S. Department of Labor has intervened in response to alarming findings of exploitative child labor practices at a Morristown manufacturing facility. Tuff Torq Corp., a prominent manufacturer of outdoor power equipment components, has been compelled to reckon with the consequences of its actions following investigations revealing egregious violations of federal labor laws.