Philip Giordano Talks About How Corporations Should Deal with Regulatory Agencies in InsideCounsel
InsideCounsel reports that large corporations, such as those in the Fortune 500, have learned to take proactive measures in dealing with regulatory groups like the Federal Trade Commission (FTC), Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). By dealing with issues upfront and addressing any problems that could arise, corporations are ensuring they can run smoothly and effectively, even with regulators watching closely. InsideCounsel identifies shifts in the focus of the SEC, including its rise in overlapping work with the DOJ, which has increased its focus on international businesses, as reasons for this approach.
According to Kaye Scholer Antitrust Counsel Philip Giordano, a former prosecutor in the DOJ’s Antitrust Division, “What the Antitrust Division found was that the cartels affecting the US affected greater and greater amounts of commerce in the US, not just by domestic manufacturers but increasingly foreign manufacturers as well.” He added, “As the economy globalized, the cartel conduct tended to globalize as well.”
Giordano also noted that for the DOJ, “in terms of criminal enforcement, there is a certain amount of alignment with the SEC.” He added, “Banks under investigation for financial crimes are facing the SEC and the Antitrust Division and in some cases state regulators.”
The responsibility of handling regulatory agencies lies with a company’s compliance department, who must keep everything in order, InsideCounsel said. Giordano advised companies to construct a “robust” compliance program that “is proactive about advocating compliance within the organization” and has “a structure that would allow for employees that become aware of unlawful conduct to report it up to the counsel's office so you have early notice that you need to address potential wrongdoing.”