X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

The U.S. government’s aggressive enforcement of the Foreign Corrupt Practices Act shows no signs of slowing down, and multinational companies continue to face enormous regulatory scrutiny for their overseas business practices. The recent prosecution and guilty plea of a former Morgan Stanley executive, however, is a sign of hope for companies that invest in compliance and do the right thing when problems are found. Although former executive Garth Peterson engaged in an elaborate conspiracy to bribe a Chinese official to win business for Morgan Stanley (and to line his own pockets), the firm will face no penalties. Why? Morgan Stanley was able to show it had a pre-existing, effective, and evolving compliance program and persuaded the government that Peterson acted on his own and against the company’s established policies. In short, Morgan Stanley’s compliance program shielded it from an enforcement action. Although there is no doubt that the firm felt the financial and reputational pain of Peterson’s actions, this case is an unusual success story and an example of a well-managed crisis. The Morgan Stanley story offers valuable insights to the commonly asked question of “What is enough when it comes to compliance?” It also shows that no matter how good a global company’s compliance program, no company is immune from rogue employees. The lesson here is that not every crisis needs be front-page news or a scandal that brings a business to the brink of disaster.

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at customercare@alm.com

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2018 ALM Media Properties, LLC. All Rights Reserved.