Glaser Weil partners Fred Heather and Julie Gerchik, and of counsel James Sargent co-authored an article for Law360 titled “Banks Should Ponder Self-Reporting In Light Of DOJ Updates.” While already highly regulated, the financial services industry may benefit from increased self-reporting as a result of a recent revision to the DOJ’s voluntary self-disclosure policy. Corporations that voluntarily report misconduct will likely receive more lenient treatment should the disclosure “be timely made following discovery, be complete in its disclosure of relevant facts, and not fall within one of the categories of mandatory disclosures.”
Heather, Gerchik and Sargent stressed the importance of:
- The benefits of voluntary disclosure;
- The risks of voluntary disclosure; and
- The need for preventive internal compliance investigations.
Since financial institutions have typically been the target of investigations, lawsuits and the like, the litigators note that entities should “evaluate the wisdom of self-reporting and correct the violations before the government or, worse, a bevy of sophisticated plaintiffs counsel discovers them.”