Regulators and policymakers around the world remain focused on culture and conduct risk. Indeed, Ian Johnston, Chief Executive of the Dubai Financial Services Authority, has gone so far as to suggest that conduct risk could be considered the “new” prudential risk….
Recordkeeping – Fines, Fines and More Fines – Another $555m for 11 More Institutions
The U.S. regulators the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have, once again, fined a raft of firms for ‘widespread and longstanding failures by the firms and their employees to maintain and preserve electronic communications.’…
Increasing Focus on Financial Promotions and Social Media Communications
The UK Financial Conduct Authority has published consultative guidance on how its financial promotion requirements apply to promotions on social media. By definition, all financial promotions should be fair, clear and not misleading. The FCA’s financial promotion rules are deliberately designed…
Artificial Intelligence – The Good and the Generative
Artificial intelligence or AI and its new, generative, iteration has hit the headlines. Depending on where you look the likes of ChatGPT is either going to save the world or be the cause of armageddon. Somewhere in between financial services firms…
Firms Need to Follow FINRA’s Evolving Focus on Texting
In a panel at the FINRA annual conference in May, a segment was devoted to FINRA’s evolving examination focus on the use of text messaging by firms and the issues associated with unmonitored communications channels. Michael Solomon, head of FINRA’s national…
Communications and the Consumer Duty
The UK Financial Conduct Authority (FCA) has published a ten point checklist for firms to consider ahead of the Consumer Duty coming into force on July 31, 2023. The Consumer Duty is a significant shift in regulatory expectations and will apply…
Recordkeeping Expectations Rise with The Evolution of Supervisory Technology – ‘Suptech’
Regulators around the world already expect firms to have comprehensive policies and procedures for record keeping. That focus is set to increase as not only regulators are investing in technology and revamping their data strategies but also firms are expected to…
More Firms Are Fined for the ‘Widespread and Longstanding’ Use of Unmonitored Communications Channels
The U.S. Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) have fined three firms, two in the same group for ‘widespread and longstanding’ failures by the firms and their employees to maintain and preserve electronic communications. To…
The Crypto Winter Is Spotlighting The Use Of Chat
The demise of multiple crypto firms has prompted regulators around the world to undertake in depth investigations into the governance, risk management and compliance arrangements in place at firms such as Binance. Much is made of the use of chat messaging…
UK PRA joins other global regulators fining firm £8M for failure to capture messaging content
The UK Prudential Regulation Authority has censured a bank for wide-ranging significant regulatory failings between December 2016 and May 2020, which spanned breaches relating to large exposure limits, capital reporting, governance and risk controls and PRA Own Initiative Requirements (OIREQs) and,…