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O’Melveny’s Traeger, Jimbo Co-Author Article for The Investment LawyerMarch 03, 2014 The March 2014 issue of The Investment Lawyer includes the first segment of a two-part article written by O'Melveny & Myers partner Heather Traeger and associate McAllister Jimbo, titled “Supervisory Liability: The SEC's Scrutiny and Support of Chief Compliance Officers." The first installment addresses the regulatory framework for failure to supervise liability and argues in favor of a bright-line test for such liability. According to the article, such a test would “remove any subjective second-guessing as to the degree of influence and respect accorded a person's conduct or role under a particular set of facts” and would ultimately “eliminate the guessing game related to the word ‘requisite’ when assessing a CCO's degree of responsibility, ability or authority over an individual.”
Part 2, which will appear in an upcoming issue of The Investment Lawyer, will discuss areas to consider in assessing potential liabilities, and provide steps for compliance officers to consider in order to minimize latent liability.
Traeger is a member of O’Melveny’s Financial Services Practice and Jimbo is a member of the Firm’s Litigation Department. They reside in O’Melveny’s Washington, DC office.