Financial Regulatory Forum

EXCLUSIVE: Public face of controversial AML rule-making effort to leave U.S. Treasury Department

May 3, 2013

A top U.S. Treasury Department anti-laundering official who has played a key role in the development of a controversial proposal to require banks and broker-dealers to better know their customers is leaving the department. Friday will be his last day. (more…)

ACCELUS SUMMIT: FATCA compliance is a manageable challenge, but deadlines loom

May 2, 2013

By Stuart Gittleman, Compliance Complete

NEW YORK, May 2 (Thomson Reuters Accelus) – A U.S. law to improve tax compliance by U.S. taxpayers with foreign financial assets is creating confusion for foreign financial institutions that must cooperate with the Internal Revenue Service to help enforce the law.

ACCELUS SUMMIT: Former U.S. SEC chief Pitt warns against imposing regulations abroad, urges industry engagement

May 2, 2013

Nick Paraskeva, for Compliance Complete

NEW YORK, May 2 (Thomson Reuters Accelus) – The United States should recognize it can no longer impose its regulatory solutions on the rest of the world, former U.S. Securities and Exchange Commission head Harvey Pitt said on Thursday.

SEC’s Walter says she is open to alternatives to overseeing investment advisers

April 19, 2013

By Emmanuel Olaoye, Compliance Complete

WASHINGTON, Apr.19 (Thomson Reuters Accelus) – There are several ways to ensure adequate examinations investment advisers: by charging investment advisers user fees, getting a bigger budget from Congress or through a self-regulated organization that oversaw investment advisers, SEC Commissioner Elisse Walter said. The important thing is to get on with it.  (more…)

New regulations require cleaner data

April 18, 2013

By Mark Davies, contributing author for Compliance Complete

LONDON, Apr. 18 (Thomson Reuters Accelus) – Continuing efforts by financial regulators and by firms themselves to monitor and offset risk have affected almost all areas of firms’ operations, including the management and maintenance of data. The overhaul of global systems following the financial crisis has led to an audit of data, and specifically of the information which firms hold about themselves and their counterparties or clients, known as business entity reference data.

New Basel credit-exposure limits will force banks to think harder on concentration

April 10, 2013

By Bora Yagiz, Compliance Complete

NEW YORK, Apr. 9 (Thomson Reuters Accelus) – The Basel Committee’s March 26 plan on the supervisory framework for measuring and controlling large exposures is offering a new insight into how internationally active banks should determine their level of exposures to a single counterparty and a group of connected counterparties, and which factors they should weigh in making the necessary calculations.

Ontario Securities Commission fines, bans “qualified person” in landmark enforcement over faked science

April 5, 2013

By Daniel Seleanu, Compliance Complete

TORONTO, April 5 (Thomson Reuters Accelus) – In a landmark settlement, the Ontario Securities Commission (OSC) has fined and permanently banned Bernard Boily for falsifying scientific research used in press releases by Bear Lake Gold Ltd., a mining exploration company listed on the TSX Venture Exchange in Toronto. When Bear Lake Gold announced that its research had been tampered with, it suffered a one-day market capitalisation loss of $42 million.

SEC has three words for hedge funds: “culture of compliance.” But what do they mean?

April 3, 2013

By Jeanette Turner, contributing author for Compliance Complete

NEW YORK, April 3 (Thomson Reuters Accelus) – The U.S. Securities and Exchange Commission inevitably emphasizes the importance of an advisory firm’s “culture of compliance,” in the regulator’s speeches, panel discussions, and announcements of enforcement wins and settlements. It stresses that firms will be held accountable when their employees break the law to benefit the firm. Having a “robust” culture of compliance can help firms avoid severe financial consequences. (more…)

U.S. class-action securities settlements fewer but more costly in 2012 after IPO slump, credit crisis; Libor looms

March 26, 2013

By Stuart Gittleman, Compliance Complete

NEW YORK, Mar. 26 (Thomson Reuters Accelus) – Court-approved securities class action settlements reported in 2012 were at a 14-year low and 18 percent fewer than in 2011 but they cost defendants twice as much as the prior year, a report released Wednesday said.

Social media regulatory guidance for U.S. banks: a road map for the finance industry

March 15, 2013

By Margaret Paradis, Thomson Reuters Accelus Contributor

NEW YORK, March 15 (Thomson Reuters Accelus) – The pace of social media usage by the U.S. financial industry has begun to rapidly accelerate. One drag on broader and deeper usage, especially by banks, continues to be uncertainty about regulatory compliance standards. Not all segments of the industry have been moving at the same pace. The broker-dealers and insurance companies have forged ahead in this area, relying on issued regulatory guidance. Additionally, asset management is catching up with the benefit of regulatory guidance issued early in 2012. Banking organizations, however, have been acting without specific guidance in this area, creating an extra risk.