Impact of New Amendments to Sentencing Guidelines on Compliance & Ethics Programs

On April 29, 2010, the U.S. Sentencing Commission submitted to Congress proposed amendments to the Federal Sentencing Guidelines for organizations, which are expected to take effect later this year. Most importantly, the amendments establish conditions that, if met, permit a company’s compliance and ethics program to be deemed effective even if high-level personnel were involved in the offense. The current enforcement environment highlights the importance of a robust compliance and ethics program, and companies should consider whether changes to their programs are merited as a result of these amendments. The Alert Memo highlights key elements of the amendments for practitioners engaged in designing and executing effective compliance and ethics programs.