RCC Investigations, Reporting, and Ethics 3

Question 1

What does 'attorney-client privilege' protect in the context of an internal compliance investigation?

Accepted Answer

Confidential communications between an attorney and client made for the purpose of obtaining legal advice

Answer

Attorney-client privilege covers confidential communications between an attorney and client specifically for legal advice, not all attorney involvement in business matters.

Question 2

An employee submits an anonymous tip through the hotline alleging financial fraud. The tip lacks specific details. What is the best initial compliance response?

Accepted Answer

Conduct a preliminary inquiry to determine if the allegation has merit

Answer

A preliminary inquiry allows the compliance team to assess whether the allegation warrants a full investigation without prematurely escalating or closing the matter.

Question 3

Under the Dodd-Frank Act, which of the following individuals is eligible to receive an SEC whistleblower award?

Accepted Answer

An employee who reports information that leads to a successful SEC enforcement action exceeding $1 million

Answer

Dodd-Frank awards go to individuals who voluntarily provide original information leading to a successful SEC enforcement action resulting in sanctions over $1 million.

Question 4

What is 'spoliation of evidence' and what are its potential consequences in a compliance investigation?

Accepted Answer

Destruction or alteration of relevant evidence after a legal hold is triggered; adverse inference or sanctions

Answer

Spoliation occurs when relevant evidence is destroyed after a litigation or investigation hold is in place, and courts may instruct juries to draw adverse inferences.

Question 5

Which element is NOT typically part of a root cause analysis conducted after a compliance violation is found?

Accepted Answer

Determining disciplinary outcomes for the responsible party

Answer

Root cause analysis focuses on systemic causes and control failures, not on determining individual disciplinary outcomes, which is a separate process.

(RCC) Regulatory Compliance Certification Practice Test

(RCC) Regulatory Compliance Certification Practice Test

RCC Investigations, Reporting, and Ethics 3