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Guide to conducting internal investigations: governance and decision-making
This is the second of six instalments
serialising the ‘Guide to conducting internal investigations’, on best
practices and guidance for those conducting or overseeing investigations in
both the United Kingdom and the United States. In this second part, Jake McQuitty and Charles Hastie shed light on governance and decision-making, along
with who should investigate.
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 10 - 18 June 2017
Firms are failing to harness cyber security basics, says FCA
“Many organisations believe that they are getting the basics [of cyber security] right, but the reality is often not the case,” Nausicaa Delfas – who is executive director at the Financial Conduct Authority – told the..
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 8 - 10 May 2017
Business banking disputes: a way forward
Allegations about mis-sold interest rate hedging products or wrongdoing at RBS’s Global Restructuring Group have highlighted that the United Kingdom lacks adequate dispute resolution facilities for small firms to gain redress from the banks. Adam Samuel suggests a way forward from “an unregulated mess”.
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 8 - 10 May 2017
FCA’s latest push in the pensions sector
Transferring from a defined benefit pension to one without any safeguards, has historically been unlikely to be in a customer’s best interests, says the Financial Conduct Authority. Its recent consultation (CP17/16) aims to ensure consumers receive a thorough assessment of their needs and objectives, along with appropriate advice, when looking to give up valuable pension benefits, reports Emily Benson.
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 10 - 18 June 2017
New York’s cybersecurity state of mind
Financial institutions operating in New York
State have recently become subject to a new cybersecurity regulation from the
NYS Department of Financial Services. Firms must get to grips with its far more
prescriptive approach than that of the UK regulator, or risk potential
enforcement action, reports Nicholas
Querée.
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 10 - 18 June 2017
Implementation of the Insurance Distribution Directive
There are just nine months to go before the Insurance Distribution Directive must be transposed, and both HM Treasury and the regulator have issued consultations on how it will look in the United Kingdom. Juanita Morrison and Emma Radmore outline the proposed changes to law and regulation.
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 8 - 10 May 2017
Market study tackles weak price competition among asset managers
The Financial Conduct Authority’s asset management market study has concluded that “price competition is weak in a number of areas of the industry” and supports the disclosure of a single, all-in fee to investors. The final report..
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 10 - 18 June 2017
Will COCON transform financial services conduct?
New conduct rules, which came into force on 7 March 2017, have extended personal regulatory duties to almost all employees of banks and are poised to be applied more widely still. But will they tackle the drivers of past failure to take effective enforcement action against the existing rules? Adam Samuel fears that the regime may in fact “exacerbate the accountability firewall”.
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 9 - 12 June 2017
If suitability is the question, culture is the answer
The Assessing Suitability Review of the financial
advice sector marks the beginning of a communication programme from the
regulator and is to be repeated in 2019. A customer-centric culture, embedded
throughout all areas of an organisation, is the only way to meet expectations
effectively, argues Andy Sutherland.
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 9 - 12 June 2017
Getting ready for the GDPR
On 25 May 2018, EU data privacy law will be consolidated and strengthened under the new General Data Protection Regulation. The GDPR will replace all current EU data privacy laws, and the UK Data Protection Act 1998 will be repealed. Enhanced protection of and autonomy over personal data lies at the heart of this significant legislative change. With less than a year until the GDPR comes into force, Hazel Moffat and Rebecca Roberts offer practical guidance on key issues the financial sector must grapple with in preparation.
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 10 - 18 June 2017
A trip to court
The Supreme Court’s judgment in Macris as well as a couple of noteworthy judicial review decisions are among the financial services developments recently handed down from the bench. Adam Samuel goes to court (or at least a roam around the law reports).
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 8 - 10 May 2017
Challenges and opportunities of the EU Benchmarks Regulation
The European Union’s response to benchmark-rigging scandals of recent years has a significantly broader scope than the regime currently established in the United Kingdom. It will be a demanding task for many firms to gain compliance in the short time available, report Tobias Sproehnle and Gareth Parker.
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 10 - 18 June 2017
Identifying your cultural DNA
“A firm’s culture emerges in large part
from inputs that are its responsibility,” Financial Conduct Authority chief
executive Andrew Bailey told an event in Hong Kong last month. Phil Deeks
outlines some steps that financial services firms can take to demonstrate a
positive culture through good customer outcomes.
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 7 - 06 April 2017
Account-holders grapple with effects of suspicious activity reporting
The Proceeds of Crime Act, as well as the courts, provide substantial protection from legal liability for financial institutions when they make suspicious activity reports. But when the National Crime Authority is enabled to extend the freezing of suspect accounts up to a possible 226 days, will the courts become more willing to assist the subject of a report than in the past? By Davina Given.
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 9 - 12 June 2017
The shifting financial advice boundary
HM Treasury’s response to its consultation on amending the definition of financial advice was published on 27 February 2017. The UK Government has confirmed its decision to change the definition to bring it in line with MiFID. But what are the anticipated outcomes of this reform and how will it affect firms operating in the UK financial services sector? Peter Wilson and Caroline Bystrom survey the changes and consider the outlook.
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 8 - 10 May 2017
The robo compliance officer
RegTech is being billed as ‘The new FinTech’, and can offer valuable intelligence as well as efficiencies, through the automation of processes and the analysis of big data. Yet is there a danger that robotic compliance could turn compliance… ‘robotic’? asks Adam Samuel.
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 10 - 18 June 2017
Firms prepare for tighter Money Laundering Regulations
The latest draft Money Laundering Regulations 2017 have been released three months before they come into force. Ian Mason warns that they impose more detailed requirements on firms as well as further criminal offences – which the regulator has indicated that it is willing to enforce.
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 8 - 10 May 2017
Land-banking fraudsters ordered to pay £2.2m
Two final confiscation orders made by the Central Criminal Court mean that a total of £2,195,496 has been demanded from eight fraudsters convicted of a land-banking scam. The investigation by the Financial Conduct Authority, known as Operation..
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 9 - 12 June 2017
FCA resumes investigation into knowledge of HBOS Reading fraud
The Financial Conduct Authority has made notification “in the public interest” that it has re-opened its enforcement investigation into events surrounding misconduct at HBOS’ Reading-based impaired assets team. These proceedings..
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 8 - 10 May 2017
BoE gave pastoral care to staff covered by SFO probe
By Neasa MacErlean
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 10 - 18 June 2017
Compliance officer and day trader charged with insider dealing
A former UBS compliance officer and a day trader have appeared
at the City of London Magistrates’ Court on 16 June charged with insider
dealing, after a joint investigation between the Financial Conduct Authority and
the National Crime..
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 10 - 18 June 2017
CO fined £75,000 for poor pension transfers oversight
David Watters – compliance oversight at two Northern Ireland
firms – has been fined £75,000 by the Financial Conduct Authority for pension
transfer failings.He neglected to take proper steps at accountants FGS McClure
Watters..
Online Published Date:
18 July 2017
Appeared in issue:
Vol 30 No 1 - 01 September 2017
Insider trader receives industry ban
Damian Clarke, a convicted insider dealer, has been banned by the Financial Conduct Authority from any function in regulated financial services because he is “not a fit and proper person”. After confessing, the former equities trader at..
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 10 - 18 June 2017
Barclays & past executives charged with fraud over crisis fund-raising
By Timon Molloy
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 10 - 18 June 2017
Guide to conducting internal investigations: immediate priorities
In this, the first of six instalments
serialising the ‘Guide to conducting internal investigations’, Charles
Hastie and Jake McQuitty provide best practices and guidance for
those conducting or overseeing investigations in both the United Kingdom and
the United States. This first part comprises an introduction as well as discussion
around immediate priorities for an internal investigation.
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 9 - 12 June 2017
Investment managers bear brunt of past year’s section 166 reports
The total number of skilled persons reports demanded by the regulator under its section 166 powers, has held steady over the past year, reports Esther Martin.
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 9 - 12 June 2017
UK waits on ESMA over retail Contract for Difference rules
By Neasa MacErlean
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 10 - 18 June 2017
Court of Appeal to consider ‘mezzanine duty’ in non-advisory sales
The embattled Royal Bank of Scotland must face yet another round of litigation, because the Court of Appeal has granted leave to Property Alliance Group to challenge its High Court defeat of last year. The judgment handed down on 21 December 2016..
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 9 - 12 June 2017
FCA asks asset managers for Brexit plans
Some of the United Kingdom’s largest asset
managers have reportedly been asked for information by the Financial Conduct
Authority about their Brexit planning.
A 30-question letter sent to 20 asset managers and
custodians with..
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 9 - 12 June 2017
FCA seeks new chair as Griffith-Jones announces departure
By Neasa MacErlean
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 10 - 18 June 2017
FCA consults on pay incentive rules for consumer credit firms
By Neasa MacErlean
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 10 - 18 June 2017
There are 13 investigations under the SMCR, reveals FCA
In the year since the Senior Managers and
Certification Regime came into force, the Financial Conduct Authority has
opened investigations into two individuals who are senior managers and 11
individuals who are, or are likely to be, certified..
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 8 - 10 May 2017
Complaints Cmmr asks FCA to review electronic recording of enforcement meetings
A complaint against the Financial Conduct
Authority’s handling of an enforcement process has prompted the Complaints
Commissioner to recommend that the regulator should review its practice on the
electronic recording of significant..
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 8 - 10 May 2017
European Parliament jettisons Commission’s latest AML blacklist
By Liz Newmark, in
Brussels
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 9 - 12 June 2017
Admiral slip-up sounds warning to insurers over renewal data disclosure
By Neasa MacErlean
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 10 - 18 June 2017
Regulatory testing for innovative products opens to third cohort
By Neasa MacErlean
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 10 - 18 June 2017
Suitability Review flags cost disclosure concerns
A review by the Financial Conduct Authority has found that financial advisers provide mainly suitable advice, but their disclosure standards fall significantly behind when it comes to making charging structures clear to customers.The review assessed..
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 9 - 12 June 2017
Product governance under MiFID II: ESMA’s final guidelines
Draft guidelines on MiFID II product governance requirements, published last October, were not without controversy. In its final report of 2 June 2017, the European Securities and Markets Authority modified the guidelines in some areas, such as portfolio diversification. Davinia Collins and Emma Radmore examine the issues the guidelines address, and their effect on firms that manufacture or distribute Investment Products.
Online Published Date:
18 July 2017
Appeared in issue:
Vol 29 No 10 - 18 June 2017