by Jonny Frank and Kaitlyn Cecala
In the wake of serious misconduct, companies self-appoint “Voluntary Monitors” to avoid one imposed and selected by the government, reduce sanctions, escape prosecution, repair brand value and restore trust. In late July, for example, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), noting Whitford Worldwide’s retention of monitors, reduced an initially proposed $20 million penalty to $824,000.[1] And, on August 10th, the CFTC, SEC and FINRA announced settlements with Interactive Brokers, noting the company’s retention of an independent consultant to make recommendations to enhance its compliance program and a separate independent consultant to assess its implementation of an initial consultant’s recommendations.[2]