Financial Regulatory Forum

U.S. banks and Brexit: ‘keep calm and carry on’ while planning for contingencies

June 28, 2016

The venerable English phrase, “keep calm and carry on,” might be appropriate for U.S. financial institutions as they grapple with unfolding drama of Britain’s separation from the European Union. With uncertainty clouding the timing, the broad shape and the ultimate fine print of the divorce proceedings, U.S. firms will need to consider a series of contingency options regarding their future operations in Europe. However, the greatest immediate test for compliance and risk management across all firms will be the likelihood of continued market volatility and possibility of improper conduct. (more…)

IMPACT ANALYSIS: DOL fiduciary rule may require multiple paths to compliance

June 27, 2016

Manisha Kimmel, Thomson Reuters

(NEW YORK) – What makes the U.S. Department of Labor’s (DOL) “fiduciary rule” so transformational is that unlike most regulations which have a major cost and operational impact, the DOL rule package will also have a material impact on the front office. This impact will include financial adviser compensation and revenue associated with Individual Retirement Accounts (IRAs) and other retirement accounts. (more…)

UK sets sights on insurance-linked securities market rich in U.S. investors

June 22, 2016

By Lawrence Hsieh, Practical Law for Regulatory Intelligence

(NEW YORK) – One of the most intriguing questions for meteorologists — and insurers — at the beginning of this hurricane season is whether the United States is due another big one. It has been about four years since Sandy, and more than 10 years since the Big Four of 2005 (Dennis, Katrina, Rita, and Wilma) made landfall.

The clash of varying views of ‘culture’ among companies and financial regulators

June 14, 2016

By Todd Ehret, Regulatory Intelligence

(Thomson Reuters Regulatory Intelligence) – Culture, values, ethics, principles, and beliefs are all somewhat synonymous. Or are they? It depends on the setting and more importantly, the viewpoint from which one attempts to assess the philosophical concepts of right and wrong.

Outside business activities: Getting assessments and monitoring right

June 7, 2016

By Julie DiMauro, Regulatory Intelligence

(Thomson Reuters Regulatory Intelligence) – Broker-dealers and investment advisers must appreciate their obligations to report on their employees’ outside business activities and implement effective practices related to monitoring and supervising them.

IMPACT ANALYSIS: U.S. bank regulators propose stable funding rule for banks; utility in question

May 27, 2016

U.S. financial regulators have taken a significant step in completing the last component of the original liquidity standards laid out by the Basel Committee with the proposed rule on the net stable funding ratio.

U.S. bank registry for misconduct gains traction in quest to fight recidivism

May 24, 2016
NEW YORK  (Thomson Reuters Regulatory Intelligence) – The problem of “bad actors” who move from firm to firm within the U.S. banking industry has focused the attention of senior management and regulators, as frustration grows over legal impediments to uncovering past misdeeds of prospective employees. Among possible solutions is a registry of those who have been let go from firms because of misconduct, but there is also a broader slate of options for combating what some see is an important hurdle to cultural reform.The issue was highlighted May 3 at a Thomson Reuters conference on banking culture by Thomas Baxter, executive vice president at the Federal Reserve Bank of New York. Baxter lamented that there was no mechanism today by which banks could identify those who have been let go from former employers for misbehavior.

Citi adopts new AML structure, adds leader as regulatory evaluation looms

May 24, 2016

As Citigroup Inc’s Citibank prepares to try and convince regulators that it has sufficiently bolstered its anti-money laundering program to justify the lifting of an April 2012 enforcement order, the bank has opted to combine its global AML compliance and operations units to create a global AML organization.

U.S. banks, regulators see progress, but not yet victory, in culture battle

May 17, 2016

The struggle to instill stronger cultural values and ethics into U.S. banking organizations has shown signs of progress over the recent past, but maintaining momentum requires business leaders to remain committed to the process, according to senior bankers and regulators. Moreover, it remains to be seen whether the reforms banks have put in place prevent any future scandals from emerging. (more…)

IMPACT ANALYSIS: Recent cases against biotech venture fund execs and PwC highlight accounting failures

May 9, 2016

By Todd Ehret, Regulatory Intelligence

(Thomson Reuters Regulatory Intelligence) – A recent settled Securities and Exchange Commission (SEC) action involving a well-known biotech venture capital investment adviser and its top executives is as an excellent reminder to those in the private fund business that private funds are not to be used as personal piggy banks. (more…)