Financial Regulatory Forum

Dodd-Frank’s hatchet men: SEC & others go after incentive-based compensation

By Guest Contributor
March 9, 2011

March 8 (Westlaw Business) –  Can Dodd-Frank’s latest anti-risk salvo, a new proposed rule on incentive-based compensation, solve as many questions as it raises? In theory, the idea is a noble one: break the chain of managing for the short-money by curtailing lopsided risks that ultimately soak the taxpayer. But even the SEC and the other agencies involved under the new Dodd-Frank regime admit there will be no shortage of questions.

INTERVIEW-China seeks developed-country benchmark in corporate governance

By Guest Contributor
March 9, 2011

Patricia Lee in Singapore

SINGAPORE, March 7 (Complinet)  -  In an emerging market such as China, where its codes of market conduct oftentimes fail to keep up with market developments, shareholders and investors dabbling in its equities market remain largely unprotected. Even then, the lack of protection has far from become a deterrent to them. The reason, according to Zhengjun Zhang, senior research fellow at the Development Research Center of the State Council of China, was due mainly to the rush for returns from the country’s burgeoning albeit nascent equities market, which has continued to see rapid growth in new firms seeking an initial public offering.

COLUMN-EU bank stress tests: what’s the point?

By Guest Contributor
March 4, 2011

Employees of the Deutsche Bank walk in front of the Deutsche Bank headquarters in Frankfurt April 28, 2010. REUTERS/Johannes EiseleBy Keith Mullin, Editor at Large, International Financing Review; the views expressed are his own.

SEC’s boardroom bombshell: directors can be costly

By Guest Contributor
March 4, 2011

Traders work in the Goldman Sachs stall on the floor of the New York Stock Exchange July 16, 2010.  REUTERS/Brendan McDermidNEW YORK, March 4 (Westlaw Business) Being an insider with a fiduciary duty sure is risky, as heavyweight Rajat Gupta is now finding out amidst serious SEC charges. So is having board members, as Goldman Sachs and Procter and Gamble are now worrying. Of great concern to each are the reputational risks and attendant costs that this might impose on them. The potential risks could relate to a broad range of issues, ranging from inside information, to disclosure of SEC investigation and board member protection. Though this likelihood may seem remote, recent experiences from Bank of America to Goldman Sachs itself show them to be painfully possible.

Vigilance over politicians’ accounts urged as cash flows from Middle East

By Guest Contributor
March 1, 2011

By Martin Coyle

LONDON, March 1 (Complinet) – An international financial crime watchdog has been urged not to relax its stance on monitoring political officials in the light of the desperate scramble to freeze the assets of deposed leaders in the Middle East and North Africa.

SEC is watching, on the Web, for sanctions evaders

By Guest Contributor
February 25, 2011

Feb. 25 (Westlaw Business) Big Brother has his eye on more than just filings: He is also surfing the Web to corroborate corporate disclosures. Staff correspondence filed by Scottsdale-based Hypercom Corp. shows that when it comes to rooting out potential sanctions-evaders in Iran and Syria, the Securities and Exchange Commission keeps close tabs. (more…)

Impact analysis: UK outline of new approach to financial regulation

By Guest Contributor
February 24, 2011

By Susannah Hammond

LONDON, Feb. 24 (Complinet) -The British Treasury’s latest proposal for reshaping financial regulation, published last week, has given more detail to the plans set out in an outline last summer. The fundamental shape of the new bodies now looks to have been finalized, but many fine points on how the new approach will actually function in practical, operational and cultural terms are still under consideration.

SEC market abuse chief takes trader-based approach

By Guest Contributor
February 22, 2011

By Nick Paraskeva, Complinet contributor

NEW YORK, Feb. 18, (Complinet)  - The Securities and Exchange Commission market abuse unit is using new approaches to better identify insider trading and abusive conduct by market professionals. Unit Chief Daniel M Hawke said the SEC is using a trader-based approach to look for patterns across groups of people, such as related trades across different products and markets by a single trader or connected group of traders. The new approach has given the SEC a greater ability to detect relationships among traders, and bring cases against large trading networks.

UK plan for early notice of insider-trading probes draws criticism

By Guest Contributor
February 22, 2011

By Peter Elstob

LONDON, Feb. 18 (Complinet) – UK regulatory lawyers have united in their concerns about giving the new Financial Conduct Authority the power to make insider dealing and other investigations public at their initial stage.

NYSE and Deutsche Borse: New York not home, so merger far from home-free

By Guest Contributor
February 18, 2011

A U.S. flag hangs outside the New York Stock Exchange building, February 15, 2011. Deutsche Boerse will take over NYSE Euronext to create the world's largest exchange operator in a deal that dodges key questions that could yet threaten its completion. REUTERS/Joshua Lott Feb. 18 (Westlaw Business) The much-ballyhooed merger of the parent company of the New York Stock Exchange with that of German exchange Deutsche Borse makes two things clear – if they can make it through the thicket of global regulatory approvals and similarly convince their shareholders to tender into the offer, they’re home free. The just-filed agreement and related corporate governance documents make equally clear that “home” will not really be New York, and the NYSE Euronext will be the New York Stock Exchange no more.  This may make regulatory approval that much more difficult, with U.S. regulators in particular looking at issues from antitrust to financial markets, to national security. (more…)