SEC Quizzes Aon On Foreign Bribery

Chicago-based Aon said it has hired a law firm to review its compliance with anti-bribery laws after it received a request from the Securities and Exchange Commission that it believes has been made to other brokerages.

In a filing with the SEC, the insurance broker said that following a request from regulators Aon began an internal review of its compliance with U.S. and non-U.S. anti-bribery laws, including the U.S. Foreign Corrupt Practices Act (FCPA).

David Prosperi, vice president, global public relations, said Aon began the review after receiving a voluntary and “informal information request” from the SEC. He said it is Aon's understanding that others in the insurance industry received similar requests for information from the SEC concerning possible violations of the FCPA.

The firm has hired an outside law firm it said has significant experience in this area to conduct the review.

Aon said it has advised the U.K. Financial Services Authority, the SEC, the Department of Justice and “certain other non-U.S. regulators of the review.”

In the filing, the company said it is unable to say when the review will be completed or what the outcome will be.

The request for information and hiring of the law firm both happened in the third quarter of this year, said Mr. Prosperi, without being more specific. He declined to release the name of the law firm performing the review.

“We told the SEC we would comply fully and began an investigation and pulled together all the information we have because this is something we take very seriously,” said Mr. Prosperi. “We want to address this as quickly and as effectively as we can.”

There is no deadline for completion of the review, he said.

A spokesman for the SEC said the department does not confirm or deny the existence of any investigations.

A spokeswoman for Marsh & McLennan, the parent company of the insurance brokerage firm Marsh, had no comment. Willis Group Holdings did not immediately return a request for comment. The two are considered, respectively, the number one and three largest insurance brokerage firms in the world. Aon is considered the second largest global insurance brokerage firm.

Violations of the FCPA have proven costly to companies.

In October of this year Ingersoll-Rand agreed to pay close to $7 million in penalties, disgorgement of profit and interest for violation of FCPA. Also in October, according to an SEC filing, Willbros Group Inc., which deals in oil production in Africa and South America, said it agreed to pay more than $32 million in fines and disgorgement of profit to settle allegations of FCPA violations.

A recent corporate survey by PricewaterhouseCoopers found that 3 percent of North American companies said they had been asked to pay a bribe and 17 percent of North American companies believed they had lost an opportunity to a competitor after they were asked to pay a bribe.