Tom Hardin Tipper X Advisors LLC
 

Compliance Training

Client Type: Investment Companies

Tipper X Advisors LLC engages with investment companies that seek to enhance their compliance culture beyond traditional employee training. As a complement to an existing legal and regulatory program, Tom shares his own experience and perspective as a way for compliance leadership to get increased buy-in from the front-line staff for their compliance initiatives.


Leveraging its new analytics tools, 78 insider trading enforcement actions were brought by the Securities and Exchange Commission in fiscal year 2016, up 100% from the prior year's 39. Regulators need no longer wait for a referral from FINRA or a whistleblower when they now have a growing database of trading information. The FBI's NYC office alone has undisclosed probes into about 30 suspected insider trading schemes. Regulators can now bring an enforcement action for the failure to have an adequate insider trading prevention program—even if no insider trading has occurred. With the increase in regulatory scrutiny, investment firms and corporations today must make compliance a top priority. It is just as much an asset for attracting investors for an investment firm as it is attracting talent. Lack of adequate compliance can result in failure of the firm. The consolidated audit trail, a central repository that is expected to begin getting data from stock exchanges and FINRA by late 2017, will significantly advance the SEC's ability to track suspicious trading. According to one former senior SEC official: "Doing surveillance for insider trading today—it's like we're in the early days of the automobile. What the consolidated audit trail will provide is the future. It's the flying car."


In a recent survey of the financial services industry, 32% of employees with less than a decade of work experience said they would likely engage in insider trading to net $10 million if there was no chance of being caught. The science of persuasion tells us that people are most affected by stories of individuals most similar to themselves. It is paramount front line employees understand the potential life consequences when the moment of temptation arises. There is no better way in a training session to drive home the sobering reality of reputation and career decimation than hearing it first-hand from someone who once sat in the employee's seat.


"An ounce of prevention is worth a pound of cure." - Benjamin Franklin

 

"The Inside Story of Tipper X"
Client Type: Conferences, Financial Services, Universities


Riveting. Emotional. Entertaining. Inspiring. Through vivid storytelling, Tom shares his journey down the slippery slope into criminal activity and the impact it had on friends and family. He discusses the psychological traps which pulled him into a spiral of rationalization. Tom takes the audience on an authentic journey of opportunity and temptation, one that mirrors that of so many young professionals who have found themselves employed on Wall Street. Tom conveys his experience in a way that is both engaging and informative. Starting with the smallest, seemingly harmless decisions, crossing the line between questionable and illegal is both deceptively easy and incredibly costly.  It is a cautionary tale fraught with suspense, career destruction and ultimately finding a higher purpose.