Financial Regulatory Forum

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.

U.S. banks, regulators see progress, but not yet victory, in culture battle

May 17, 2016

The struggle to instill stronger cultural values and ethics into U.S. banking organizations has shown signs of progress over the recent past, but maintaining momentum requires business leaders to remain committed to the process, according to senior bankers and regulators. Moreover, it remains to be seen whether the reforms banks have put in place prevent any future scandals from emerging. (more…)

Ontario’s no-contest settlement with CI Investments a lesson in self-policing

February 25, 2016

The Ontario Securities Commission (OSC) has approved a C$164 million no-contest settlement agreement (PDF) with CI Investments Inc. to compensate investors for the firm’s failure to accurately calculate the value of certain mutual funds. It is the largest investor compensation package to result from a no-contest settlement since the OSC began using them in March 2014, and reflects the intended “self-policing” outcome of the OSC’s Revised Credit for Cooperation Program. (more…)

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

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…)

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.

SEC examinations grow aggressive, sometimes intrusive – industry panel

May 15, 2015

Gone are the kinder, gentler days when it comes to onsite examinations by the Securities Exchange Commission, say senior compliance officers, who portray the agency’s recent behavior as much more aggressive, and at times even intrusive on a firm’s time and resources.

SEFs 2015 outlook: industry sees more flexible execution rules; harmonization

January 13, 2015

Regulatory efforts to simplify existing swap mandate rules in order to reduce fragmentation between the U.S. and Europe are likely to dominate the focus of participants in the swaps execution facility (SEF) market in 2015.

INTERVIEW: U.S. Fed’s culture focus will take more dialogue with banks – Wells Fargo’s Callahan

December 4, 2014

Patricia Callahan is the Chief Administrative Officer for Wells Fargo, responsible for corporate communication and government relations among her numerous duties. A 36-year veteran of the company, Callahan has served as head of Compliance and Enterprise Risk Management, providing regulatory compliance oversight for the company. She spoke recently with Thomson Reuters about banking culture, what it means for Wells Fargo, and how the Federal Reserve might assess culture in its supervisory review process. (more…)