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KPMG says accounting regulator ‘was misled’ over Carillion audits

02 February 2022
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KPMG has apologised for misconduct and misleading the UK’s accounting regulator after former auditors were accused of “forgery” related to audits including that of Carillion, the major government contractor that collapsed four years ago. Jon Holt, the chief executive of KPMG UK, said it was “clear” that misconduct had occurred, in a statement published to mark the start of a disciplinary tribunal on Monday. The Financial Reporting Council (FRC) has alleged that KPMG misled its investigators over routine inspections of the audits of Carillion and the software company Regenersis, in 2016 and 2014 respectively. The FRC has alleged that “relevant individuals acted with a lack of integrity in dishonestly or recklessly misleading the regulator”, according to tribunal documents. Continue reading…

FCA launches discussion on improving the financial services compensation framework

27 January 2022
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The FCA has recently published a Discussion Paper aimed at maintaining a compensation framework that provides appropriate protection for consumers, funded in a fair and sustainable way. The Financial Services Compensation Scheme (FSCS) provides compensation when certain authorised financial services firms are unable to meet claims against them. The FSCS plays a critical backstop role in protecting consumers and ensuring confidence in financial services markets. Continue reading…

Commission proposes to end the misuse of shell entities for tax purposes within the EU

19 January 2022
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The European Commission has recently presented a key initiative to fight against the misuse of shell entities for improper tax purposes. The proposal should ensure that entities in the European Union that have no or minimal economic activity are unable to benefit from any tax advantages and do not place any financial burden on taxpayers. This will also protect the level playing field for the vast majority of European businesses, who are key to the EU’s recovery, and will ensure that ordinary taxpayers do not suffer additional financial burden due to those that try to avoid paying their fair share. Continue reading…

Amsterdam Conference: Choose how you want to attend the ECEI conference!

11 January 2022
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Join the Society of Corporate Compliance and Ethics for their 10th Annual European Compliance & Ethics Institute, which will be taking place both in-person and virtually to learn about the challenges facing the European and global compliance and ethics community. Hear from today’s compliance and ethics leaders on the latest solutions to your challenges, hear strategies to mitigate risk, and improve your organisation’s compliance program. ECEI’s educational sessions will provide you with the opportunity to earn live Compliance Certification Board (CCB)® continuing education units (CEUs).
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FSB illustrates practical approaches to the execution of bail-in

31 December 2021

The Financial Stability Board (FSB) has recently published a Practices Paper on the Execution of Bail-in. Bail-in is at the core of resolution strategies for global systemically important banks (G-SIBs). Set out in the Key Attributes of Effective Resolution Regimes for Financial Institutions, it is an important tool enabling an orderly resolution that minimises any impact on financial stability and ensures the continuity of critical functions, without exposing taxpayers to loss. Continue reading…

Elena Pykhova

Elena Pykhova

Elena Pykhova is a thought leader, influencer and founder of a think tank, Best Practice Operational Risk Forum.

Positive Outlook for Risk Practitioners in 2022: Risk Recruitment is on the rise

13 December 2021

The importance of the risk profession has been increasing even pre-pandemic, and the demand for practitioners is on the rise. To quote Bloomberg, ‘risk management is suddenly a hot job’1, with firms looking to employ more resilience and crisis management experts. The regulatory landscape also influenced the hiring drive, with focus on hot topics such as cyber and third-party risk management. A survey conducted by the Best Practice Operational Risk Forum, comprised of risk professionals from over fifty international financial services firms, noted that risk recruitment in fact accelerated during 2021, with 45% of firms increasing the size of their risk teams. 74% remarked that the composition of the team has changed, with more focus on specialist roles.  Continue reading…

Commission proposes to strengthen coordination of safe travel in the EU

30 November 2021
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The European Commission has proposed to update the rules on coordination of safe and free movement in the EU, which were put in place in response to the COVID-19 pandemic. Since the summer, vaccine uptake has increased significantly and the EU Digital COVID Certificate has been rolled out successfully, with more than 650 million certificates issued to date. At the same time, the epidemiological situation in the EU continues to develop with some Member States taking additional public health measures, including administering booster vaccines. Taking into account all those factors, the Commission is proposing a stronger focus on a ‘person-based’ approach to travel measures and a standard acceptance period for vaccination certificates of 9 months since the primary vaccination series. The 9 month period takes into account the guidance of the European Centre for Disease Prevention and Control (ECDC) on the administration of booster doses as of 6 months, and provides for an additional period of 3 months to ensure that national vaccination campaigns can adjust and citizens can have access to boosters.
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Frank Elderson: The NGFS Glasgow Declaration – From a coalition of the willing to a coalition of the committed

24 November 2021
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Frank Elderson, Member of the Executive Board of the European Central Bank, recently gave a speech at the COP26 Finance Day Presidency Event on “A Financial System for Net Zero”, Frankfurt am Main, Glasgow on 3 November 2021. This is his official speech. Our collective journey started in Paris almost four years ago, when eight central banks and supervisors from an already diverse background decided to join forces. Our aim was to rise to the climate challenge and work together to develop the tools we need as central banks and supervisors to foster and accelerate the greening of the global financial system. As a coalition of the willing, we have been working together in the Network for Greening the Financial System (NGFS), which I am proud to chair. Continue reading…

The importance of the Glasgow summit: Actions speak louder than words, but not for everyone

10 November 2021
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On November 2nd, the European Commission President Ursula von der Leyen announced a €1 billion pledge at the 26th UN Climate Change Conference of the Parties (COP26) in Glasgow as the European Union contribution to the Global Forests Finance Pledge. This 5-year support package from the EU budget will help partner countries to protect, restore and sustainably manage forests worldwide and deliver on the Paris Agreement. President Ursula von der Leyen said: “Forests are the green lungs of the earth. We need to protect and restore them. I gladly announce that we are pledging €1 billion to protect world forests. This is a clear sign of the EU’s commitment to lead global change to protect our planet, in line with our EU Green Deal.” In relation to the Glasgow summit, the Prime Minister of the Netherlands, Mark Rutte recently made headlines for all the wrong reasons. At the summit, he called for ‘action, action, action’ on climate change, and then a few days later, he made a comment on how the Netherlands was going to continue to invest in fossil energy. He later retracted his comment after receiving backlash from the Dutch people, stating that his words at the summit had little meaning.  Continue reading…

François Villeroy de Galhau: How the commitment to FinTechs is being implemented

08 November 2021
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François Villeroy de Galhau, Governor of the Bank of France and Chairman of the Autorité de contrôle prudentiel et de resolution (ACPR), delivered a speech at the ACPR-AMF Forum FinTech, Paris on 11 October 2021. Note: the following is a written version of the official speech. I am very pleased to welcome you to the Banque de France this morning for this annual ACPR-AMF FinTech Forum – and I would also like to welcome Robert Ophèle, Chairman of the AMF. Mr. Minister, dear Cédric, you have once again given us the pleasure of being present for this second forum. The strong attendance of public officials testifies to our collective commitment to FinTechs, which I am convinced are indispensable to the financial sector, as a driver of creativity, vitality and efficiency. Continue reading…