I don't doubt the sincerity of Caroline's remorse, and people who have served their sentences need a path back to work. My view is that the path is better found by retraining to work in another sector away from handling or controlling other peoples' money.
From a governance perspective, no financial org should employ anyone convicted of financial fraud. Basic reasons why:
Most regulators require a 'fit and proper person' test (for finance orgs but not charities I think)
Culture: it signals integrity is negotiable
Fiduciary duty: knowingly appointing a convicted financial fraud is hard to defend
Client protection
Stakeholder and donator / investor confidence
Risk management and internal controls: fraud is a core risk
Trust and brand
Insurance premiums are high or refused if a convicted financial fraud is employed
Legal liability: directors may face negligent hiring claims
Some jurisdictions have 'clean slate' laws (e.g. acknowledging redemption), but finance orgs are often exempt.
Manifund is a charity not a regulated finance org so the rules are less stringent. I'd be interested to hear what safeguards the board has put in place – that would go a long way to addressing the concerns listed in this forum. It appears the CEO who made the hire is one of three (?) governing members of Manifund. What independent oversight exists? That is, who reviews financial controls and system access, and are any directors independent of the founders and of FTX-related matters?
thank you! Brilliant oped with a focus on facts!
I don't doubt the sincerity of Caroline's remorse, and people who have served their sentences need a path back to work. My view is that the path is better found by retraining to work in another sector away from handling or controlling other peoples' money.
From a governance perspective, no financial org should employ anyone convicted of financial fraud. Basic reasons why:
Manifund is a charity not a regulated finance org so the rules are less stringent. I'd be interested to hear what safeguards the board has put in place – that would go a long way to addressing the concerns listed in this forum. It appears the CEO who made the hire is one of three (?) governing members of Manifund. What independent oversight exists? That is, who reviews financial controls and system access, and are any directors independent of the founders and of FTX-related matters?
Congrats Grace! Amazing. Is it possible to read a non-paywalled version of your oped?