Financial Regulatory Forum

Expect corruption crackdown to widen, intensify

By Guest Contributor
April 15, 2014

By Stuart Gittleman, Compliance Complete

NEW YORK, Apr. 15, 2014 (Thomson Reuters Accelus) – Companies and financial firms that are potentially subject to the Foreign Corrupt Practices Act and other anti-corruption regimes should expect more of the enforcement crackdown they have seen in recent years, except in greater quantity and intensity, two former U.S. government officials said last week.

Special report: UK regulators face mounting concerns over their handling of multi-million pound fund collapse

By Guest Contributor
April 4, 2014

By Alex Davidson, Compliance Complete

LONDON, Apr. 4, 2014 (Thomson Reuters Accelus) – Regulators face searching questions about whether they acted effectively in the multi-million pound collapse in 2012 of an unregulated collective investment scheme (UCIS). The then Financial Services Authority’s (FSA) decisions concerning the Connaught Income Fund, Series 1, a UK-domiciled fund based in London, will come under fresh scrutiny at a debate in Westminster Hall, between members of parliament and HM Treasury this month, subject to scheduling. The Financial Conduct Authority (FCA) has said that the FSA, its predecessor body, acquitted itself well in dealing with the situation. Detractors, including investors, MPs and independent financial advisers (IFAs), have said the regulator failed to act appropriately on warnings about the misappropriation of multiple millions of pounds from the fund.
Some have found fault with the regulator, fund operators and IFAs who sold the Connaught fund, but it remains to be seen who, if anyone, will be held broadly accountable. Critics of the regulator have said it failed to investigate effectively evidence of financial misappropriation and insolvency, at Tiuta Plc (Tiuta), a regulated mortgage lender, to which the fund was lending money. The evidence was provided by whistleblower George Patellis, chief executive of Tiuta, which, like its unregulated subsidiary,Tiuta International (TIL), was a specialist partner to the Connaught fund. (more…)

Conduct risk: an overview

By Guest Contributor
March 19, 2014

By Jane Walshe, Compliance Complete

LONDON/NEW YORK, Mar. 19 (Thomson Reuters Accelus) – Conduct risk is one of the hottest topics in financial services but what exactly is it? This article explores the various definitions of the concept, which can be hard to pin down, put forward by regulators and international standard setting bodies. It will be followed by other articles exploring the findings of Thomson Reuters Accelus’ recent Conduct Risk Report, which provide an industry benchmark showing the work firms are doing in relation to this important area.

“Big data” tools will improve regulatory oversight, FINRA’s di Florio says

By Guest Contributor
February 25, 2014

By Stuart Gittleman, Compliance Complete

NEW YORK, Feb. 25 (Thomson Reuters Accelus) - The Financial Industry Regulatory Authority is developing a suite of “big data” information sources and analytics to improve regulatory oversight of securities firms, according to Carlo di Florio, FINRA’s chief risk officer and head of strategy.

Interview: After SAC, corporate monitor says what makes effective compliance programs

By Guest Contributor
November 13, 2013

By Emmanuel Olaoye, Compliance Complete

WASHINGTON, Nov. 13 (Thomson Reuters Accelus) - Last Monday’s announcement that the hedge fund SAC Capital Advisors will pay $1.8 billion and hire a compliance monitor to settle insider trading charges highlighted the importance of outside compliance monitors in modern financial services enforcement.

Brokers face a fight asking the SEC to end exchanges’ SRO structure

By Guest Contributor
August 14, 2013

By Nick Paraskeva, Compliance Complete contributing author

NEW YORK, Aug. 14 (Thomson Reuters Accelus) - Wall Street has asked regulators to consider ending the special supervisory status given to exchanges, saying that new technology such as dark pools and algorithmic trading has led to broker-dealers directly competing with exchanges for market share.

U.S. Justice Department chooses former prosecutor to be HSBC compliance monitor

By Guest Contributor
June 6, 2013

By Brett Wolf, Compliance Complete

NEW YORK, June 6 (Thomson Reuters Accelus) - The U.S. Justice Department on Wednesday said it has chosen a former New York County prosecutor who is known for his innovative pursuit of criminals to police HSBC’s efforts to clean up its anti-money laundering program.

Exclusive: Consultancies on second tier as Justice Department seeks HSBC compliance monitor

By Guest Contributor
May 14, 2013

By Brett Wolf, Compliance Complete

May 14, (Thomson Reuters Accelus) - Although a federal judge in Brooklyn has not yet signed-off on a deal between HSBC and the Justice Department that would settle allegations that anti-money laundering failures at the bank allowed drug cartels to launder hundreds of millions of dollars, candidates for a lucrative job policing the bank’s compliance with the pact are scrambling to win the work. (more…)

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

By Guest Contributor
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.

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

By Guest Contributor
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.