WHAT DOES THE TRUMP ADMINISTRATION MEAN FOR … … · 12/1/2017 · Agenda Introductions...

www.redflaggroup.comwww.redflaggroup.com

WHAT DOES THE

TRUMP

ADMINISTRATION MEAN

FOR COMPLIANCE?

January 12 2017

www.redflaggroup.com

Introduction

About The Red Flag Group

The Red Flag Group is a global professional services firm specializing in integrity and compliance risk. We have completed over 500,000 due diligence reports for thousands of companies in the past 10 years and work with many Fortune 500 companies from around the world.

Traci CoughlanPrincipal of AdvisoryThe Red Flag Group

Christopher SindikDirector of Marketing

The Red Flag Group


Agenda

Introductions

Preliminary Thoughts

Use of social media to influence companies

Political appointments: domestic focus

Views of FCPA and other compliance areas

The first 100 days and beyond

What can Trump do without the support of Congress?

What does all of this mean for compliance?

Q&A


Preliminary thoughts

Compliance is here to stay… now and for the next 4

years … Ethical behavior is always in style

Increased scrutiny on foreign companies, but US

companies are not “off the hook”

Impact on specific compliance areas?

Civil antitrust?

Dodd-Frank?

Expect fewer new regulations

Which campaign promises must he back up and

what is impact on compliance?

Review your program year-to-year

No shortage of materials to stimulate conversation


Current environment and questions

Dow is up over 1,000 points

Hard to establish cause

Markets hate uncertainty

Many former business leaders have been appointed to top offices

Theme of de-regulation

“For every one new law introduced, two will have to be removed”

Can companies get away with more under Trump?

Should companies take more risk?


Compliance is here to stay

No amount of repealing laws will allow the abolishment of general compliance, ethics and corporate responsibility ….

“Compliance is driven by settlements not by the number of pages of regulations. Compliance is driven by watching business leaders lose their job or go to jail over compliance or ethics issues.”

Roy Snell, SCCE CEO


Poll question

1. Is your company already making changes to the compliance program based on Trump taking office?

A. Yes

B. No


Social media


Use of social media

Putting pressure on companies in a new way

Several themes have emerged from these interactions in that companies should: Keep jobs in America, pay their fair share of taxes, give the government a fair deal


Court of public opinion

He has already named and shamed companies on social media and will likely continue to do so.

The speed of social media is much quicker than government

Can you believe how unethical [insert company name] is?! Everyone should stop buying their products and support a better company that cares about America.


Political appointments


Attorney General nominee

Senator Jeff Sessions from Alabama

Law and order views

Confirmation hearing started Jan. 10th

Most focus on discrimination and civil rights issues – domestic focus:

Views on women’s and LGBT rights: HDR

Immigration: workers’ rights in question

Civil rights: police issues/search warrants

As a federal prosecutor he was very aggressive in prosecuting individuals

Possible FCPA and Antitrust implications


Poll question

1. What are some activities your company will engage in as a result of Trump’s election victory (select all):

A. Conducting a risk assessment

B. Examining foreign operations

C. Increasing communications

D. Compliance program review/audit


Views on compliance issues

The FCPA is a “horrible

law and it should be

changed.” It puts US

businesses at a “huge

disadvantage.” (circa 2012)


Perception:Views on the FCPA and corruption

Trump’s comments on the FCPA were made on May 15, 2012 in the context of facilitation payments in Mexico.

He went on to say that “We are like the policemen for the world, it’s ridiculous”

Advocates for enforcement by each country to take care of activities in their own country

Many smaller fines issued to US companies


Reality: Future of the FCPA and enforcement

Aggressive Enforcement Likely Here to Stay

Contributes to “Making America Great”: Aligns to fight against terrorism

“Fairness” principles and “Rule of Law” in business

Yates Memo and FCPA Pilot Program:

Not that costly for the US Government

Places heavy lifting on companies: resource

Easy money: Agencies review and collects the cash

Repeal or relaxation in conflict with “Drain the Swamp” statements – law is 40 years old

7 of 10 largest fines levied against foreign cos.

Countries making headway (China, Brazil, etc.)


Stance on compliance issues

Antitrust

Money Laundering

False Claims Act

FCPA

Tax Evasion

Trade Compliance

Human Trafficking

OSHA

Consumer Privacy

Dodd-Frank (Conflict Minerals & Whistleblower bounties)

Environmental


Attitude towards industries

Infrastructure

Financial Services

Healthcare

Manufacturing (in US)

Energy and Mining

Automotive

Aerospace and Defense

Entertainment and Media

Telco

Technology (select)

Pharmaceuticals


The first 100 days… and

beyond


First 100 days thru Year 1

Negotiate fair trade deals, withdraw from

some existing agreements (TPP)

Infrastructure spending

Immigration

Cancel “job killing restrictions” in energy

to create jobs – energy independence

Rollback Obamacare

Cyber security

Budget/Tax Reform:

Federal workforce reduction?

Lead to reduced enforcement?

Simplification of Tax Code/Federal Regs


Year 2

Impact from changes in laws and focus may be felt:

Repealing laws

Possible reduction in federal workforce

Likely relaxed enforcement of laws

Trump policies will be in full swing

May have time to move on to secondary areas of focus


Year 3 and 4

Time to look at campaign promises

No candidate ever does as much as they promise

Will he live up to hardline stances?

Presidents tend to soften stance after they learn more details and think of re-election.

Will need the support of Congress for many initiatives to stick


What can Trump do without Congress?

Without Congress

National Security

Foreign Policy

Kill trade agreements (TPP)

Immigration # limits and sources

Wages and benefits for gov. contractors

Environmental regulations (pipelines)

With Congress

Repeal Obamacare

Multi-country agreements

Border wall

Tax policies

Budgeting

Spending on infrastructure


The President’s Strategic and Policy Forum

Made up of 19 top current and former business executives from:

Pepsi, GE, IBM, Tesla, Uber, Boeing, Wal-Mart, GM, JPMorgan, Blackstone, Cleveland Clinic and others

Broad-based representation but some notable missing pieces from Tech space and Media.

“My Administration is going to work together with the private sector to improve the business climate and make it attractive for firms to create new jobs across the United States from Silicon Valley to the heartland.”


What does

all of this

mean for

corporate

compliance

programs?


5 Tips

Executive education and communication: Maintain the “Status Quo” on Compliance

Take stock of current program and resources

Where are resources going

Corporate level and abroad

Compliant versus Ethical

Agility

Designate resource(s) to track updates in policy and enforcement (coordinate with Government Relations and Industry groups)

Clear cut areas of focus: compliance/business

Immigration, Sanctions (Russia?)/Watchlists, Trade Compliance, Government Business

Get a seat at the business planning table NOW


QUESTIONS?


Upcoming webinars

Outsourcing trends that will help you prepare for 2017

Jan. 18 at 11 am EST (4 pm GMT)

The Red Flag Group recently surveyed over 200 compliance professionals to examine the administrative, resource and time challenges faced in managing an in-house compliance department. subject matter experts will discuss the types of challenges faced and how compliance professionals are reorganising their teams and programmes in response.

How to kick-start your due diligence programme

Jan. 26 at 8 am EST (1 pm GMT)

Many compliance teams know that they need to run more comprehensive third party due diligence programmes than they currently have, but often don’t know where to start. This webinar tells you how

https://insights.redflaggroup.com/upcoming-webinars/outsourcing-trends-will-help-you-prepare-for-2017

https://insights.redflaggroup.com/upcoming-webinars/upcoming-webinar-how-to-kick-start-your-due-diligence-programme


CONNECT

Websitewww.redflaggroup.com

[email protected]@redflaggroup.com

Webinar schedule & Recordings www.redflaggroup.com/webinars

Follow us on Twitter @redflaggroupEmail your feedback and comments [email protected]

mailto:[email protected]

mailto:[email protected]

WHAT DOES THE TRUMP ADMINISTRATION MEAN FOR … … · 12/1/2017 · Agenda Introductions...

Documents

Transcript of WHAT DOES THE TRUMP ADMINISTRATION MEAN FOR … … · 12/1/2017 · Agenda Introductions...