Financial Regulatory Forum

Broker-dealers face big compliance challenge, new costs in FINRA stress tests

By Guest Contributor
September 30, 2015

By Richard Satran, Regulatory Intelligence

NEW YORK, Sept. 30, 2015 (Thomson Reuters Regulatory Intelligence) - Broker-dealers who have been largely spared the burden of the painful stress testing that major bank faced after the financial crisis of 2008 will finally taste some of the medicine given to the financial giants.

The growing role of the insurance compliance officer

September 24, 2015

The role of the insurance compliance officer has evolved from a purely advisory role into a proactive one with internal audit characteristics in the last few years according to a white paper by Ethical Corporation, a global business publication.  (more…)

COMMENTARY: ‘Get tough’ law enforcement needs ‘get tough’ governance, too

By Guest Contributor
September 23, 2015

By Scott McCleskey, Regulatory Intelligence Expert

NEW YORK, Sept. 23, 2015 - The U.S. Justice Department’s initiative to focus on individual culpability in corporate crimes is long overdue and holds the potential, if vigorously pursued, to put teeth into efforts to enforce the law by deterring criminal activity. There are costs and perils to this approach, but the continuing litany of corporate misbehavior despite rising corporate fines suggests that other approaches have been less than effective. (more…)

COMMENTARY: Citigroup surveillance lapses: “but for the grace of God”

By Guest Contributor
September 9, 2015

By Scott McCleskey, Regulatory Intelligence Expert

NEW YORK, Sept. 9 - The recent SEC enforcement action against Citigroup for trade surveillance lapses provides an embarrassing lesson about the pitfalls of technology and the importance of the “third line of defense”, an effective audit of the processes of compliance and other control functions. (more…)

U.S. industry group balks at higher capital standards for insurance companies

September 2, 2015

A U.S. financial services trade group has urged industry regulators to reject additional capital requirements for big insurance firms, as proposed by the International Association of Insurance Supervisors.

Promontory, by settling, bows to realities of legal challenges against regulators

August 25, 2015

In a swift reversal of its earlier determination to sue the New York State Department of Financial Services, the Promontory Financial Group, a leading consultant to the industry, took what some observers say is the kind of advice it typically offers clients when accused of wrongdoing: settle. (more…)

IA BRIEF: The state of adviser social media compliance in the U.S.

August 10, 2015

In the past year compliance professionals have been preoccupied with preventing cybercrime, and rightfully so, with recent high-profile cyber attacks and increased regulatory attention. However, the compliance implications of social media in the financial services sector remain an evolving trend as well, with high importance. A recent investment adviser survey offers a glimpse at the state of the current adviser programs while exposing new risks.

Global finance leaders to banks: reform culture and conduct or face more regulation

August 3, 2015

A number of the world’s largest banks are still failing to implement much needed cultural and conduct reforms in their businesses, and a failure to do so could spur more government regulation, a long awaited report by the Group of Thirty (G30) forum of international finance leaders said on Thursday.

COMMENTARY: Three steps to more resilient risk-management systems – DTCC risk chief

By Guest Contributor
July 23, 2015

By Andrew Gray, Deposit Trust & Clearing Corporation

NEW YORK, July 23, 2015 (Thomson Reuters Regulatory Intelligence) - Of all the changes to global financial markets in recent years, the risk management function has undergone one of the most dramatic transformations in the industry. The discipline is broader, more sophisticated, and more diverse than ever before, encompassing new responsibilities that add operational, systemic, technology, vendor, and physical risk, as well as business continuity management, to the more traditional financial risk categories.

SEC’s ‘administrative proceedings’ enforcements dwarf court cases in 2015

July 9, 2015

Firms facing enforcement actions by the Securities Exchange Commission have growing reason to worry should such actions take the form of “administrative proceedings” rather than court cases, a tool that critics say limits options for those in the agency’s crosshairs. In first half of 2015, the securities regulator has shown no signs of dampening its increasing reliance on administrative proceedings.