The rapid convergence of federal regulation efforts and heightened expectations of governance accountability is creating a significant challenge for the audit & compliance committee.

Indeed, deregulation efforts like US Department of Justice's recent "Brand Memorandum" (prohibiting the conversion of agency guidance into enforceable rules) and its long-anticipated relaxation of the controversial "Yates Memorandum" on individual accountability, will be welcomed by many health care companies.

But the expectation of relaxed regulations and more limited civil and criminal enforcement activity carries with it a risk of being interpreted by some as a "green light" to pursue potentially problematic arrangements. This attitude could threaten the authority and influence of the committee's compliance agenda.

This relaxing of executive attitudes towards legal boundaries would come at the worst possible time, with emerging expectations of fiduciary obligations heading in exactly the opposite direction. New trends (reflected in court decisions, regulatory actions and academic commentary) would hold directors more directly accountable for corporate compliance failures. "Where was the board when all this was going on?"

The audit and compliance committee may need to take proactive steps in order to counter the consequences of the deregulation/accountability convergence. It may be important to send a clear message throughout the organization that corporate policies on legal compliance, corporate conduct and legal risk evaluation of business initiatives will not change—and may even be strengthened.

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