Inside FERC Quotes David Applebaum on New FERC Compliance Paper
Akin Gump energy regulation, markets and enforcement partner David Applebaum was quoted in the Inside FERC article “FERC compliance paper encourages tracking of trading strategies likely to raise red flags.” The article references white papers released this month by the Federal Energy Regulatory Commission (FERC) on compliance strategies and manipulation law.
The article reports that lawyers representing regulated companies are taking a close look at the papers for any guidance as to what trading strategies FERC enforcement staff will consider manipulation, as well as for direction on compliance programs. Applebaum, a former director of FERC’s Division of Investigations, said a key takeaway from the compliance paper is the emphasis that FERC places on monitoring and auditing, rather than having compliance shops focus on training alone. Having a company “looking at its positions and analyzing them on a regular basis — that is what FERC believes is important,” he said.
Applebaum said the white paper on manipulation, which compiles legal and analytical work underlying a host of FERC enforcement actions, serves as a useful summary for those new to the area of law, without drawing new lines on what constitutes manipulation. Ultimately, he said the most important guidance will come from federal court rulings that have the force of law.