What will happen to a firm found to be in violation if the company had proactively tried to prevent misconduct from occurring?
A)The government will rule that their actions were insufficient.
B)Penalties or fines may be reduced.
C)The firm will be forced to hire an ethics officer.
D)Regulators will charge the firm with criminal activities.
E)The firm will incur no punishment.

Question

Quizplus · Accepted Answer

If a firm has proactively tried to prevent misconduct from occurring, regulators or authorities may take this into consideration and potentially lessen the penalties or fines that the firm would have otherwise faced. However, the firm may still face some consequences for any violations that occurred. It is important for companies to have strong compliance programs in place to prevent misconduct and demonstrate good faith efforts to regulators.

What Will Happen to a Firm Found to Be in Violation