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Building a common supervisory approach for smaller banks

17 August 2018

Banking supervision in the euro area has just marked another important milestone towards achieving a more consistent approach to supervising banks. From this year onwards, a common methodology will be applied to the annual supervisory assessment of all euro area banks, including the smaller ones, operating within the Single Supervision Mechanism framework. These smaller banks – known as less significant institutions (LSIs) – are not directly supervised by the European Central Bank (ECB) but by the national competent authorities (NCAs) of the 19 member countries of the euro area. Their assessment, the Supervisory Review and Evaluation Process (SREP), is a core activity of ECB Banking Supervision and is conducted, with the necessary proportionality, by the NCAs. Continue reading…

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DFS superintendent vullo reminds regulated entities of approaching cybersecurity regulation compliance effective date

16 August 2018

All Department of Financial Services (DFS) Regulated Financial Services Companies Are Required to Comply with Regulation’s Governance Policies and Procedures, as Well as Risk Based Monitoring Systems Requirements and Encryption Programs for Nonpublic Information by September 4, 2018. Financial Services Superintendent Maria T. Vullo reminded all Department of Financial Services (DFS) regulated entities covered by DFS’s landmark cybersecurity regulation that the third transitional period of New York’s first-in-the-nation cybersecurity regulation ends on September 4, 2018. Beginning on September 4, 2018, banks, insurance companies, and other financial services institutions regulated by DFS are required to have come into compliance with several additional provisions of the cybersecurity regulation that are vital to the governance and components of a robust financial services cybersecurity program. Continue reading…

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Mark Dunn
Mark Dunn

Unlocking Beneficial Ownership a Key Concern in New ABC Benchmarking Report

10 June 2018

Rising concern about opaque and suspect third-party corporate ownership structures is a notable finding in the Kroll / Ethisphere 2018 Anti-Bribery and Corruption Benchmarking Report. When senior executives working in ethics, compliance or anti-corruption were asked to rank the reasons that potential third parties failed to meet their companies’ standards, risks associated with beneficial structures rose from fifth to third when compared to the previous year’s survey. While still ranking behind general reputational or integrity concerns, and conflicts of interest, such risks were elevated above questionable relationships with politically exposed persons, and unusual contract and payment structures. About 60 percent of respondents reported that they were concerned or very concerned about beneficial ownership risks associated with their third parties, and only one in five were ‘very comfortable’ with the mechanisms they had in place to address these risks. A similar proportion was minimally or not at all comfortable. Continue reading…

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MiFID II: ESMA makes new bond liquidity data available

16 August 2018

The European Securities and Markets Authority (ESMA) has made available new data for bonds subject to the pre- and post-trade requirements of the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR) through its data register. ESMA has started, since July 30, to make available the second quarterly liquidity assessment for bonds. For this period, there are currently 466 liquid bonds subject to MiFID II transparency requirements. However, this assessment, which is dependent on the data submitted to ESMA, experienced data quality issues. The content of the non-equity file has now been updated, by removing the affected instruments. Continue reading…

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Mark Dunn
Mark Dunn

Global spread

01 February 2018

In October 2016 the International Standards Organisation issued the ISO 37001, a new standard that organisations and companies can use to certify their anti-bribery and corruption compliance procedures. The ISO 37001 was agreed by standards bodies in 37 countries and it is already being promoted by many countries across the world. Peru became the first Latin American country to implement the standard. One reason given for this is that in 2015 the country lost nearly $4 billion because of misappropriation of public funds, bribery and other types of corruption. The government of Montreal in Canada has appointed someone to analyse and propose how to apply the principles of the ISO 37001 to the city. Earlier, Singapore’s Corrupt Practices Investigation Bureau (CPIB) launched the Singapore Standard, which is based on the ISO 37001. The standard has also been widely adopted in the Middle East and North Africa. Colin Keeney of Deloitte notes that six of the 37 countries involved in crafting the standard came from this region.

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