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…)
Financial Regulatory Forum
IMPACT ANALYSIS: Recent cases against biotech venture fund execs and PwC highlight accounting failures
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…)
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…)
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…)
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.
A U.S. federal judge rescinded a government designation of MetLife as “too big to fail” and subject to increased regulatory oversight.
By Michael Blissenbach, Regulatory Intelligence
(Thomson Reuters Regulatory Intelligence) – The U.S. Supreme Court on March 23 will hear arguments in a major Obamacare case over insurance and contraception, with a range of potential outcomes that became more complicated with the death of Justice Antonin Scalia.
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…)
MetLife, AIG spinoffs of U.S. insurance units show “disruptive” fiduciary rules, not just capital needs
By Richard Satran, Regulatory Intelligence
(Thomson Reuters Regulatory Intelligence) – The American insurance industry is being rapidly reshaped from a state-regulated backwater by what an industry group calls the “disruptive” impact of government regulation — and it is not just the often-cited capital demands placed on them by regulators who want bank-like systemic risk protection and activist investors who want quick returns on their investments.
By Scott McCleskey for Thomson Reuters,
NEW YORK – Elections, like other forms of reality TV, provide moments of great entertainment but are often short of actual reality. It seems both parties this year need to have (at least) one candidate who captures airtime and ink with populist ideas unmoored from the practical world of getting things done. Democrats, not to be out-Trumped by Republicans, feature Bernie Sanders and his platform for Wall Street reform.