Corporate & Securities Law

When the Criminal Becomes a Compliance Leader

By John Wallbillich

The Financial Times management blog notes a different twist on the “do as I say, not as I do” bromide:

Students at Canada?s Richard Ivey School of Business will have an unusual guest speaker on Thursday: Nick Leeson, the rogue trader who served four years in prison after bringing down Barings Bank. Mr. Leeson will aid the students in a case study analysing the bank?s collapse, while giving tips on the safeguards needed to prevent similar debacles. Afterwards, the students will take part in the ?Ivey Ring Tradition Ceremony?, in which they pledge ?to act ethically and honestly in all their activities?.

The school’s press release touts the benefits of business-barons-to-be of listening to Mr. Leeson:

For future business leaders, it’s important not to just focus on success, but to also hear how people get themselves into trouble. Mr. Leeson will also highlight the importance for all businesses of integrating financial oversight into an enterprise-wide system that supports and promotes ethical behaviour.

Having a criminal lead a compliance case study is one way to teach a lesson; part of the message here could be that crime does pay eventually, as Mr. Leeson gets $15,000 or so for talks such as this.

It’s not clear whether Mr. Leeson will hand out the Ivey Rings; we have obtained closed-circuit camera footage of the ring Mr. Leeson wore around the time of the Barings collapse:

Full post as published by The Wired GC on May 08, 2008 (boomark / email).