SEC is a major enforcer of the FCPA. Violations of anti-corruption and anti-bribery laws may result in additional violations of securities regulations, as the corporation may fail to accurately disclose their financial position and potential liabilities to the financial market. An investor who purchases a share shortly before a company is investigated for or charged with corruption offences could see the value of their investment fall drastically in a short period, either due to negative public perception of the company or because of the massive fines imposed on the company upon conviction or settlement. As disclosure and investigation of corruption and bribery may have a significant impact on the value of a company’s shares, securities law is applicable in the anti-corruption context.
SEC is a major enforcer of the FCPA. Violations of anti-corruption and anti-bribery laws may result in additional violations of securities regulations, as the corporation may fail to accurately disclose their financial position and potential liabilities to the financial market. An investor who purchases a share shortly before a company is investigated for or charged with corruption offences could see the value of their investment fall drastically in a short period, either due to negative public perception of the company or because of the massive fines imposed on the company upon conviction or settlement. As disclosure and investigation of corruption and bribery may have a significant impact on the value of a company’s shares, securities law is applicable in the anti-corruption context.
Ch.-08_April2018_v5.docx