Financial Regulatory Forum

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…)

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.

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.

IMPACT ANALYSIS: U.S. bank regulators propose stable funding rule for banks; utility in question

May 27, 2016

U.S. financial regulators have taken a significant step in completing the last component of the original liquidity standards laid out by the Basel Committee with the proposed rule on the net stable funding ratio.

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…)

IMPACT ANALYSIS: Recent cases against biotech venture fund execs and PwC highlight accounting failures

May 9, 2016

By Todd Ehret, Regulatory Intelligence

(Thomson Reuters Regulatory Intelligence) – A recent settled Securities and Exchange Commission (SEC) action involving a well-known biotech venture capital investment adviser and its top executives is as an excellent reminder to those in the private fund business that private funds are not to be used as personal piggy banks. (more…)

Panama Papers and ‘who owns what’ — big implications for financial services

April 21, 2016

By Julie DiMauro, Regulatory Intelligence

(Thomson Reuters Regulatory Intelligence) – The mushrooming “Panama Papers” scandal is a warning to financial services firms that they cannot be complacent about their obligation to determine beneficial ownership, know their customers, and perform due diligence on all of their business associates. (more…)

‘Panama Papers’ spur calls for U.S. adviser rule on money-laundering controls

April 20, 2016

In the wake of revelations outlining how a Panamanian law firm helped the wealthy stash wealth offshore, 11 financial transparency advocacy groups on Monday urged the U.S. Treasury Department’s anti-money laundering unit to issue a final rule requiring investment advisers to help combat financial crime. An adviser trade group disputed the accuracy of the group’s criticisms, and the Treasury unit developing the rule says it is still weighing public comments. (more…)

COLUMN: Roots of the next financial crisis: the last one’s veterans give views

April 19, 2016

By Lawrence Hsieh, Practical Law for Regulatory Intelligence

(Thomson Reuters Regulatory Intelligence) – There is a general consensus that the next financial crisis will follow the familiar arc of bubble, falling asset values, a run, credit/liquidity crunch, finger-pointing, new regulation, financial innovation, and unintended consequences for both regulation and innovation. There is less consensus about the where, when, how, and why.