Brian Michael spoke to the Wall Street Journal about a new Justice Department policy making chief compliance officers personally liable for guaranteeing the effectiveness of their company's compliance program in settlements with federal prosecutors.

"I think it could make a compliance officer's job really difficult," Brian said. "It runs the risk of creating a lot of resentment and friction between chief compliance officers and other senior executives."

Brian added that the policy could put compliance officers in a bind, and while it empowers them to a degree, giving them the ability to refuse certification could fracture their relationship with the CEO and other executives.

"The CEO is not going to look kindly on a COO who is not willing to sign this thing, particularly if the CEO or other senior executives think they ought to be able to," Brian said.

Read the full article (subscription may be required).

Originally published by Wall Street Journal

Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morrison & Foerster LLP. All rights reserved