Financial Regulatory Forum

IMPACT ANALYSIS: Data protection practices and governance – action items for firms

March 3, 2016

By Julie DiMauro, Regulatory Intelligence

NEW YORK (Thomson Reuters Regulatory Intelligence) – Regulators want to see how well the organizations they oversee protect personal data. The challenge is to craft these protection protocols to meet their demands and to provide evidence of compliance.

IMPACT ANALYSIS: Second phase audits of patient-privacy compliance starting under U.S. health agency

January 26, 2016

By Elizabeth Polking, Regulatory Intelligence

(Thomson Reuters Regulatory Intelligence) – Hundreds of U.S. health-care providers over the next three years will be scrutinized for their compliance with patient privacy regulations, as regulators respond to findings of widespread compliance gaps and launch a new round of industry audits.

Lessons from 2015: investor-centered compliance takes center stage in U.S.

January 13, 2016

By Julie Dimauro, Regulatory Intelligence

The course of regulatory developments in the United States in 2015 showed a decided focus on investor protections, tracking illicit financial flows, protecting data and ensuring overall cyber security. Furthermore, there was continuing discussion of the independence and financial commitment firms must give to compliance leadership.

IA Brief: Year-end chores list: do what you say

December 15, 2015

The looming turn of the calendar offers a good occasion for investment adviser compliance officers to make good on their promises.

Spotlight hits technology platforms as U.S. mulls fiduciary standard

December 8, 2015

It was during a congressional hearing in June that U.S. Labor Secretary Tom Perez spoke about how technology companies can help investors in making better choices about their investments. Perez said several times that automated portfolio advice services, or “robo-advisors,” can help the government to meet its goal of getting firms to offer retail investors suitable products at an affordable price.

IMPACT ANALYSIS: Ontario regulator’s review cites suitabilty, know-your-customer lapses at exempt market dealers

November 17, 2015

By Helen Chan, Regulatory Intelligence

ONTARIO, Canada (Thomson Reuters) – The Ontario Securities Commission has highlighted Know-Your-Customer (KYC) deficiencies as one of the significant compliance problems facing exempt-market dealers in Ontario. The annual report by the OSC’s Compliance and Registrant Registration branch (CRR) of the Ontario Securities Commission signals that the market regulator of Canada’s financial capital is becoming increasingly more concerned that inadequate KYC efforts by registrants is leading to exempt securities being sold to investors who fail to qualify under a prospectus exemption. (more…)

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

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.

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

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.

Training as a tool for promoting “mood in the middle” compliance

May 12, 2015

By Julie DiMauro, Compliance Complete

NEW YORK, May 12 (Thomson Reuters Accelus) – The training and education programs offered business staff by compliance departments can be an important tool for setting the right “mood in the middle,” an ethical tone demonstrating the embedding of a firm’s compliance objectives within its culture, according to industry participants at last week’s Thomson Reuters Financial and Risk Summit in New York.
Dozens of recent and expensive compliance failures illustrate that policies alone do not make an effective compliance culture. Speakers emphasized the importance of mid-level managers, and not just the top of company hierarchy, in conveying the necessary ethical and compliance standards. Regular and ad hoc compliance training sessions, used to keep business personnel apprised of the firm’s policies and procedures as well as regulatory events, are a good venue for that.  (more…)