Financial Regulatory Forum

International graft crackdown takes hold, FBI official says, citing Brazil

August 5, 2016

The Brazil corruption scandal hitting the highest level of government is seen by many as another sign that the $1 trillion-a-year drained from the global economy through graft is unstoppable. Federal Bureau of Investigation veteran William McMurry views it differently — the country’s high-level prosecutions of public officials show that law enforcement is cracking down on bribery in places where it has long been ignored as the cost of doing business.

Goldman’s online lending, Brexit plans show risk strategy’s bottom-line focus

July 27, 2016

By Richard Satran, Regulatory Intelligence

(Thomson Reuters Regulatory Intelligence) – Goldman Sachs wants to be known as the best-in-class risk firm. At the start of the year Goldman’s chief financial officer Howard Schwartz told analysts the firm saw bottom-line benefits in its compliance hiring binge while other banks were pulling back or staying pat. (more…)

Ontario whistleblower policy seen strong on compliance culture, weaker on incentives, confidentiality

July 19, 2016

Ontario’s incoming securities whistleblower program will promote better compliance culture among market participants, but the limited incentives and confidentiality it offers to informants may hamper its effectiveness, legal experts have warned. (more…)

Floating NAVs: SEC money market fund compliance risk looms on the horizon

July 7, 2016

With the deadline for new valuation rules on certain money market funds only months away, compliance and risk professionals at fund management firms need to confirm they have taken the necessary steps to ensure that their systems are ready, as well as having communicated how such changes will impact their clients.

Brexit signals shift: political risk hits long-stable Western economies

July 6, 2016

By Richard Satran, Regulatory Intelligence

(NEW YORK) – The idea that the biggest risk faced by the global economy no longer comes from the Middle East or somewhere along the Cold War fault line is not entirely new. But the Brexit vote and its aftermath underscores the need for risk professionals to understand the implications of the growing revolt against elites sweeping through the part of the world long viewed as the most stable.

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.