In 2011, the US Department of Justice launched its first investigation into the US asset management community and its dealings with foreign sovereign funds under the Foreign Corrupt Practices Act. Asset managers fears grew... and with good reason. (Cue scary music.)
It is no secret that U.S. banks and money managers compete hotly for access to the cash hoards of foreign sovereign wealth funds. Now the Securities and Exchange Commission is taking a long, hard look at just how they compete.
A largely overlooked provision of the U.S. financial reform bill could create a cottage industry of whistle-blowers trolling for violations of the Foreign Corrupt Practices Act, says Douglas Lankler, chief compliance officer of drugmaker Pfizer.